As of January 5, thanks to the efforts of the American Society of Travel Agents (ASTA) to secure unclaimed settlement funds stemming from…
As of January 5, thanks to the efforts of the American Society of Travel Agents (ASTA) to secure unclaimed settlement funds stemming from class action law suits against seven domestic airlines, 338 checks have been issued to travel agencies in the US Virgin Islands and Puerto Rico in the amount of $283,339.41.
We are extremely proud that travel agents in Puerto Rico and the U.S. Virgin Islands are finally receiving their well-deserved money. Travel agents work hard each and every day on behalf of the consumer and deserve to be paid for their efforts, said Richard M. Copland, CTC, ASTA president and CEO. ASTA has worked tirelessly over the past nine years to secure these funds on behalf of all affected travel agencies. When the dust settles and a long battle ends with travel agents receiving what they have earned, it shows that the right cause is worth the fight.
In 1995, ASTA brought a case against the airlines, claiming that maximum dollar limits, or caps, imposed on travel agency commissions were unlawful. The case ended with a gross settlement payment of approximately $86 million, with no admission of wrongdoing. However, the original distribution of funds to travel agencies omitted agencies in the US Virgin Islands and Puerto Rico, even though they, too, were subjected to the airline commission caps. Since that time, ASTA has worked to secure distribution of the funds due those 578 travel agencies.
After two successful appeals to the U.S. Court of Appeals for the Eighth Circuit, ASTA secured an order from the U.S. District Court at Minneapolis directing that the remaining funds be distributed to the Puerto Rico and the U.S. Virgin Islands agencies in question.
ASTA has applied to the court for permission to place advertisements in newspapers in Puerto Rico and the U.S. Virgin Islands identifying the qualifying agencies that have not yet claimed their share of the distribution.
We encourage the remaining travel agencies to step forward and collect their hard-earned money, said Copland.
ASTA strongly urges all agencies that have received distribution checks to cash them promptly. Outstanding checks will become void 180 days from the issue date and cannot be replaced. Currently, of the checks distributed, 315 have been cashed for $272,019.23 and 23 checks remain outstanding.
Representatives of currently existing Puerto Rico and U.S. Virgin Islands travel agencies organized as partnerships or corporations, that were in existence in 1995, and any agent that operated an agency as a sole proprietor at that time, who believes that his/her agency may be on the list of 578 designated travel agencies, but does not believe that the agency received a distribution check, are strongly urged to contact Gilardi & Co. LLC, 1115 Magnolia Avenue, Larkspur, CA 94939, Phone: (415) 464-3036, Fax: (415) 927-7698, or e-mail Kristy.Ford@gilardi.com. Future disposition of funds remaining after this process is complete, if any, will be decided at a later date.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
