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Travel agents
seek probe of airline
plan for Web site

Hawaiian Air says the company
has reserved the right to participate

From staff and wire reports

SPRINGFIELD, Va. -- Travel agents have asked the Department of Justice to investigate whether a plan by 27 domestic and foreign airlines to create a Web site to sell low-cost tickets would violate antitrust laws.

The American Society of Travel Agents alleged in its complaint yesterday that the Web site would lead to price fixing and cause consumers to discontinue buying tickets through travel agents. "This joint site is a clear attempt on the part of the airlines to lure consumers onto the Web with lower prices and drive all their competitors out of business, resulting in complete and total domination of the public airways," said Joe Galloway, president and chief executive of the Alexandria, Va.-based travel agents group.

Travel agents have lately come under increasing financial pressure from airlines, who are cutting the commissions they pay the agents and competing directly with the agents through their own Web travel sites.

Delta, United, Northwest and Continental airlines announced last month they would begin operating the joint Web site in the spring as a response to the growing number of sites offering discount tickets. Those four airlines were listed as the primary collaborators on the site, while American, US Airways, American Trans Air, AirTran, Hawaiian, Midwest Express, Midway and Vanguard have joined as associate members.

Keoni Wagner, a spokesman for Hawaiian Airlines Inc., said the airline has "reserved the right to participate" in the Web site but the connection hasn't developed beyond that. Therefore, he said, he doesn't know enough of the details to comment on the ASTA move.