BRIEFCASE TRAVEL AGENTS SAY AIRLINES COLLUDED.

Byline: - Staff and Wire Services

SAN FRANCISCO - Dozens of travel agents accused major air carriers Wednesday of colluding to eliminate commissions on ticket sales in violation of antitrust laws.

The complaint, filed in U.S. District Court, alleges that 21 airlines conspired to ban commissions to travel agents who sell tickets for the carriers.

Plaintiff's attorney Joseph Alioto said the industry, beginning in 1997, reduced 10 percent commissions to 8 percent. Two years ago, commissions dropped to 5 percent of the ticket price and in March of last year many airlines eliminated commissions.

A similar suit, which has class-action status, is pending in a federal court in Wilmington, N.C. The carriers include Alaska Airlines, Delta Airlines and United Airlines, who have denied the accusations.

The Air Transport Association, an umbrella group representing the industry, said it has not seen the San Francisco suit and declined comment, spokeswoman Diana Cronan said.

Philip Morris bond insisted up front

CHICAGO - Plaintiffs lawyers are insisting Philip Morris USA pay a $12 billion bond due before the company can appeal a $10.1 billion court loss, despite the judge's suggestion that a compromise be reached.

Standard & Poor's ratings agency expressed doubts Wednesday that the two sides will reach an agreement, lowering the credit rating of Philip Morris' parent, Altria Group, and threatening to cut it to junk status if the bond is not reduced soon.

Investors apparently weren't turned off, however, and Altria's stock rose 30 cents to close at $30.30 on the New York Stock Exchange.

Philip Morris executives have said a $12 billion bond - required under Illinois law to cover the judgment as well as interest and fees - would bankrupt the company. They declined to be interviewed.

CalPERS may OK investing change

The nation's largest public pension system may adopt a new approach to pulling out of countries it deems unsuitable for its investment.

The move by the $130 billion-strong California Public Employee Retirement System is partly a response to criticism that national markets can be destabilized when it decides to pull its funds.

Next week, the retirement system's board will decide whether to start using a so-called ``cure period'' in dealing with countries in danger of getting dropped from its list of permissible equity markets. The development would essentially grant a yearlong grace period to any country that CalPERS is considering shunning, said spokeswoman Pat Macht.

The CalPERS' staff has recommended to the board that its investment managers get notice when a country is being scrutinized, but not be required to pull out money unless it doesn't improve during the grace period.

American Eagle set for Valley mall 

SHERMAN OAKS - American Eagle is set to land at Westfield Shoppingtown Fashion Square.

The teen casual-ware retailer will open a 5,600-square-foot shop at the mall today on the mall's upper west side, its 48th California location.

Catering to a 16-34 age demographic, it offers jeans, khakis and casual shirts.