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consolidator for Korean Airlines, and the NA Tours companies sold
retail airline tickets.
Northwest did not require its consolidators to pay for
ticket stock at the time of transfer to the consolidator or upon
the transfer of that ticket stock to the consolidator’s
subagents. Rather, payment was not due, and a consolidator could
retain the proceeds of a sale of Northwest ticket stock, until
the submission of an “auditor’s coupon” to Northwest. (An
auditor’s coupon was one copy of the multiple-copy ticket that
served as a permanent record of a ticket sold.) Before 1987,
auditor’s coupons did not have to be submitted to Northwest until
45 days after each 2-week sales period, when coupons for all
tickets sold during the sales period were due, together with
payment for the tickets less the consolidator’s commission.
Sometime in 1987, Northwest modified its procedures to reduce the
period during which proceeds from the sale of ticket stock could
be retained by a consolidator. Under the new procedures,
consolidators were required to submit auditor’s coupons for
tickets sold on a weekly basis; Northwest then prepared a sales
report based on the submitted coupons and invoiced the
consolidator, with payment due within 7 days of receipt of the
invoice.
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Last modified: May 25, 2011