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Agency Associations react bitterly to IATA’s rejection of revised agency agreement

Genesis Travel Distribution System and CSTAR/USTAR President Bruce Bishins voiced his empathy for the…

Genesis Travel Distribution System and CSTAR/USTAR President Bruce Bishins voiced his empathy for the UFTAA/Global Consultative Committee shock at the airlines’ rejection of a revised Passenger Agency Agreement at the 25th meeting of the IATA<.> Passenger Agency Conference in Bal Harbour, Florida.



In one swift motion, the airlines put asunder more than two years of joint airline and agency dialogue by the multi-member airline and agency GCC which recommended significant changes to the agreement, including new language relative to equitable agency remuneration. The GCC issued a terse communique today alleging that IATA had deceived and humiliated the agency community by pretending to dialogue in good faith, when the reality was that the airlines had no intention of making any pro-agent changes to the agreement.



The GCC called for the agency community to take immediate action including establishing task forces to develop and implement alternatives to the existing airline-controlled distribution, accreditation, and settlement (BSP) systems.



While we certainly understand the UFTAA/GCC dismay in suffering this major defeat, we cannot say that we are very surprised. For nearly six years, Genesis has been advocating a complete restructuring of agency distribution technology and facilitation, knowing fully-well that the airlines had no desire to change the status-quo, said Bishins.



The UFTAA/GCC action plan in response to IATA’s rebuff is seen as a complete vindication of the key components of GENESIS’ initiative to move processes and controls away from airlines and redirect them through the travel agency community. The UFTAA/GCC strategy to bring an end to the monopoly and regulatory permissiveness maintained by the airlines and IATA is a long-overdue acknowledgment that GENESIS was and continues to be the only viable solution in strengthening the agency distribution channel.



I will be contacting UFTAA officials in the coming days to seek their active and complete support in moving GENESIS forward and hope that a joint cooperation will become the focal point of the upcoming UFTAA World Congress in Kuala Lumpur this fall, Bishins added.





Members of the Global Consultative Council (GCC) clarify position on GENESIS



In a press release issued by Mr. Bruce Bishins, there is an unfortunate misinterpretation on our position taken in response to IATA Passenger Agency Conference action.



Nowhere in the release did we mention Defeat or Genesis. The GCC agents laid out a very definitive action oriented plan to achieve the necessary and reasonable changes to the airline agent relationship we have been pursuing for over two years. It is an approach that has been forced on us because the direct approach of negotiation between the parties appears to have failed. We are surprised that an advocate of the agent community, as opposed to an airline, would interpret this as a defeat!



With respect to our options we have very definite alternative systems in mind. They are working systems that can either be easily adapted or expanded to meet agent needs and include well capitalized companies with proven technical expertise. Genesis is not considered an option at this time as it is not proven and operating. It has also been positioned by Mr. Bishins as a CRS replacement and airline friendly vehicle and this does not satisfy our needs.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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