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ILLINOIS CORPORATE TRAVEL, INC. v. AMERICAN AIRLINES, INC.

No. 89-1230.

889 F.2d 751 (1989)

ILLINOIS CORPORATE TRAVEL, INC., doing business as McTravel Travel Services, Plaintiff-Appellant, v. AMERICAN AIRLINES, INC., and IVI Travel, Inc., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided November 13, 1989.

Attorney(s) appearing for the Case

Steven B. Varick and Malcolm H. Brooks, McBride, Baker & Coles, Jeffrey R. Liebman, Arvey, Hodes, Costello & Burman, Chicago, Ill., for plaintiff-appellant.

Jay Conison and Alan H. Silberman, Sonnenschein, Carlin, Nath & Rosenthal, David Marx, Jr., John G. Simons and Mark L. Yeager, McDermott, Will & Emery, Clay H. Phillips and Mary P. Chapin, Russell M. Pelton, Peterson, Ross, Schloerb & Seidel, Chicago, Ill., Steven C. McCracken, Michael J. Rider, Gibson, Dunn & Crutcher, Newport Beach, Cal., for defendants-appellees.

Before WOOD, EASTERBROOK, and RIPPLE, Circuit Judges.

EASTERBROOK, Circuit Judge.

American Airlines would like to ban discounting by the firms that sell its tickets, but a prohibition cannot be enforced. Under-the-table discounts, rebates by "captives" (travel subsidiaries of the firms whose employees are traveling), and tie-in sales (packages of air travel and other services such as hotels, with the price reduction on the air fare allocated for bookkeeping purposes to the hotel or car rental) are endemic. American decided...

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