Travelers Could Get $400 Million in Coupons

About $400 million worth of discount airline coupons awarded in a price-fixing suit could be distributed to travelers in December if a judge OKs a final report on the processing of claims.

Lawyers plan in the next few days to submit to U.S. District Judge Marvin H. Shoob a report on the yearlong processing of 4.3 million claims for the coupons.

“We will ask for permission to print them and mail them out,” said Ann Yahner, one of the attorneys representing travelers in the class-action case. “Our hope is that once the judge issues approval, we can get the certificates printed and mailed in the month of December.”

Distribution of the coupons would be the final chapter in a suit filed in 1990 against the nation’s major airlines, accusing them of using a computerized reservations system to mutually raise ticket prices.

The airlines denied wrongdoing but agreed last year to a $458-million settlement that includes the coupons as well as attorney fees and court costs. Shoob approved the settlement in March, 1993.

Named in the suit were American Airlines, Continental Airlines, Delta Air Lines, Midway Airlines, Northwest Airlines, Pan American World Airways, Trans World Airlines, United Airlines and USAir.

Even though Pan Am and Midway have since gone out of business, people who bought tickets from them were still eligible to receive the discount certificates for use on the other carriers.

The suit was brought on behalf of anyone who bought tickets on the defendant airlines between Jan. 1, 1988, and June 30, 1992, for travel through 34 domestic hubs. It was estimated that included about 12 million people.

Since the settlement, two auditing firms have been reviewing the claims.

Yahner said she does not know how many claims were approved, though the figure will be included in the report to Shoob.

She said about 186,000 claims were duplicates and have been recommended for rejection. Some were denied because the claimant bought tickets on an airline not included in the suit.

Those who purchased five or more tickets during the period or took trips totaling $2,500 or more will be awarded coupons worth up to 10% of the cost of the original tickets.