Northwest Airlines has dropped a USD7.50 service charge on tickets purchased through travel agents after American Airlines failed to match it. American Airlines introduced two new charges but only for tickets ordered over the telephone or at an airport counter, and did not match the one introduced by Northwest Airlines on tickets bought through travel agents.

The introduction of the USD7.50 charge by Northwest Airlines outraged travel agents who said that it was effectively a price hike as they would have to pass the charge on to customers. Online travel agent Travelocity sued the airline after its announcement on 24 August 2004 and the case was referred to the US Justice Department by the American Society of Travel Agents and the Business Travel Coalition, reports The Associated Press.

   ((Comments on this story may be sent to [email protected]))