FOR IMMEDIATE RELEASE                                          AT
THURSDAY, MAY 11, 1995                             (202) 616-2771
                                               TDD (202) 514-1888

    JUSTICE DEPARTMENT ANNOUNCES ANTITRUST REVIEW OF PROPOSED
            SETTLEMENT BETWEEN TWA AND TRAVEL AGENTS 

                                 
     WASHINGTON, D.C. -- The Department of Justice's Antitrust
Division said today it will examine a proposed settlement of a
dispute over travel agent commissions reached between Trans World
Airlines Inc. and the nation's 25,000 travel agencies, and is
considering how best to file its views about the settlement with
the U.S. District Court in Minneapolis where it is awaiting
judicial review.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Antitrust Division, said the Division has concerns about the
portion of the proposed settlement that ties future commissions
to nationwide sales of tickets issued by a particular airline. 
"An agreement between all travel agents and an airline to
increase that airline's sales at the expense of other carriers
raises serious competitive concerns," Bingaman said.
     The proposed settlement involves a private antitrust suit
brought by the American Society of Travel Agents (ASTA) and other
travel agents against TWA and six other major airlines alleging
that the airlines colluded to reduce travel agent commissions.   
In February, each of the private suit's defendant airlines
announced that it would place a cap on travel agent commissions
at $50 for roundtrip tickets and $25 for one-way tickets.  For
many years prior to the announcements, travel agents earned a
commission of 10 percent on the total cost of each ticket sold,
the Department said.
     Under the terms of the proposed settlement, TWA would pay
agents 10 percent commissions retroactively for the period
February 15 to April 30, 1995, and would pay agents 10 percent
for sales made from May 1, 1995 to September 30, 1995.  TWA would
then continue to pay 10 percent commissions until April 30, 1996,
provided that its revenues from all ticket sales through travel
agents nationwide continued at 10 percent over prior levels.
     The other defendants in the lawsuit that are not parties to
the settlement are; American Airlines, Delta, United Air Lines,
USAir, Continental and Northwest.  
               
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95-266