Northwest Airlines Reaches Possible Settlement Agreement with American Express
By Carol Kennedy
Published on October 18, 2005
The lawsuit alleges that American Express travel services division withheld over $63 million dollars in ticket revenue. In the lawsuit, the now bankrupt airline stated that the failure of American Express Co. to pay the owed money would significantly impact the airline's ability to reorganize. Attorneys for Northwest said the matter should be resolved some time next week.
Since the advent of frequent flyer programs, airlines and credit card companies have enjoyed a mutually beneficial relationship as consumers with frequent flyer cards spend twice as much as other credit card holders.
The details of the settlement agreement have not yet been disclosed.
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