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UNIGLOBE TRAVEL ANNOUNCES PLAN TO BILL AMERICAN AIRLINES FOR LOST COMMISSION REVENUES

 UNIGLOBE TRAVEL ANNOUNCES PLAN TO BILL AMERICAN AIRLINES
 FOR LOST COMMISSION REVENUES
 LAS VEGAS, June 2 /PRNewswire/ -- U. Gary Charlwood, the chairman and chief executive officer of UNIGLOBE Travel (International) Inc., has announced plans to send American Airlines a bill to cover commissions lost after the airline cut fares by as much as 50 percent last week.
 "Airfares in North America are already among the lowest in the world," Charlwood told 1,200 delegates attending the travel organization's annual convention on Sunday.
 "To slash them even further is little more than a wild-eyed grab for increased market share that will only result in less competition and higher fares in the future."
 Charlwood said the huge surge in travel that was anticipated when the price war began has yet to materialize, but in the short term the travel industry is reeling from its effects.
 "The suicidal price cuts announced by American Airlines last week will only mean increased losses for an airline industry already beset with turmoil and red ink. If their objective is to drive other carriers out of business, it won't happen overnight. At some point, sanity and reason must prevail; American Airlines' board of directors will eventually see to that."
 Charlwood said the airfare wars have become an absolute nightmare for travel agents who must issue new tickets and refund portions of their commissions every time the airlines juggle their fares.
 "From our perspective, this commission clawback is an unfair and short-sighted business practice that cannot go unchallenged," Charlwood said.
 Charlwood said UNIGLOBE Travel and the rest of the retail industry resent being forced to return commissions paid on previously-issued tickets and service already provided by the retail agent.
 "If we are told a ticket is one price, and sell it for that price, why should we be forced to return part of our commissions when American Airlines decides to escalate a price war?
 "It is like being invited to dinner and then being asked to return the salad a week after you have already eaten it.
 "American Airlines can price its product anyway it wants, but our organization intends to send an invoice on behalf of those agents who will be forced to return previously earned commissions as a result of this latest round of price cuts."
 Michael Levy, president and chief operating officer of UNIGLOBE Travel (International) Inc., said although the price changes announced by American Airlines will hurt small independent travel agents the most, the entire industry is affected. He noted that large organizations such as UNIGLOBE Travel are seeing an increase in the number of calls from independents trying to sell their retail operations as the price war takes its toll.
 "On behalf of the 900 UNIGLOBE Travel locations worldwide, we are going to make a statement to American Airlines by sending a rather large bill for commissions promised and services rendered," Levy vowed.
 "We invite others in the travel industry to join us in the protest," Levy said. "Agents outside the UNIGLOBE Travel organization who want to add any of their lost commissions to the bill, should contact the nearest regional office of UNIGLOBE Travel (International) Inc. as soon as possible."
 -0- 6/2/92
 /CONTACT: Wayne Hartrick or Knox Henderson of James Hoggan & Associates, 604-682-5461; or U.S. Regional Contacts: Fountain Valley, Calif., UNIGLOBE Travel (Southwest), Sandy O'Connor, 714-968-4494; or Alameda, Calif., UNIGLOBE Travel (Mid Pacific), Gerry Hucek, 510-769-4747; or Englewood, Colo., UNIGLOBE Corporate World Travel, Frank or Barbara Blatter, 303-773-8747; or Washington, D.C., UNIGLOBE Full Service Travel, Beth Pazienza, 202-244-5000; or Tallahassee, Fla., UNIGLOBE Governor's Square Travel, Jan Nichols, 904-222-2100; or Marietta, Ga., UNIGLOBE First in Travel, Sheri Cohen, 404-988-0088; or Chicago, UNIGLOBE Premier Travel, Kristin Tomlinson, 312-427-8400; or Rockland, Maine, UNIGLOBE Davies Travel, Bill Davies, 617-982-8000; or Worthington, Ohio, UNIGLOBE Horizons Travel, Jim West, 614-885-3555; or Houston, UNIGLOBE Dynamic Travel, Regina Gardner, 713-621-3833; or Federal Way, Wash., UNIGLOBE Select Travel, Karin Feldt, 206-874-6033; or Canadian Regional Contacts: Vancouver, British Columbia, UNIGLOBE Vista Travel, John Graham, 604-687-5141, or Toronto, UNIGLOBE Normark Travel, Mark Crone, 416-364-4888/ CO: Uniglobe Travel (International) Inc. ST: Nevada IN: AIR LEI SU:


JL -- LA008 -- 6115 06/02/92 10:01 EDT
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Date:Jun 2, 1992
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