United, CWT Reconcile Partnership

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United, CWT Reconcile Partnership

OCTOBER 03, 2008 -- United Airlines and Carlson Wagonlit Travel reestablished a preferred supplier agreement, the companies said last night, following United's efforts to draw down agency incentive costs that left its agreement with CWT on the cutting room floor.

In an e-mail message sent Thursday evening by CWT, the parties pointed to a renewed agreement that went into effect Sept. 29. "Coming to this agreement is in the best interest of CWT, United and the two organization's mutual clients, both companies agreed," the statement read. Neither the carrier nor agency disclosed terms of the deal and said, "No further comment or detail regarding this agreement is or will be available."

United Airlines' move this summer to pull its preferred partnership with Carlson Wagonlit Travel was part of a wider effort to trim $80 million in annual agency incentive programs (BTNonline, Aug. 11). Though CWT was the largest travel management company hit by pullbacks, United outlined an aggressive posture and a trimmed portfolio of partners—including corporate clients, travel management companies, leisure travel agencies, fare consolidators and agency affiliate programs.

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