After successful negotiations with IATA under the auspices of the European Commission, ECTAA and GEBTA…
After successful negotiations with IATA under the auspices of the European Commission, ECTAA and GEBTA have withdrawn their complaint filed in October 2002 against IATA and IATA member airlines for infringing European competition legislation. This withdrawal expresses ECTAA’s and GEBTA’s wish to continue the dialogue with IATA and IATA member airlines in a normal negotiation process in order to complete an agreement on outstanding issues.
On 18 October 2002 ECTAA, the Group of National Travel Agents’ and Tour Operators’ Associations within the EU, and GEBTA, the Guild of European Business Travel Agents, filed a complaint with the European Commission against IATA and IATA member airlines for infringing European competition law, as provided for in Articles 81 and 82 of the ECTreaty.
The basis of the complaint was that the IATA Programme is too burdensome compared to the advantages it provides. It notably prevents agents from rationalising their activities in the European Internal Market. Moreover, airlines which fix rules binding on agents are now engaged in strong competition with these agents for the sale of air tickets. ECTAA and GEBTA thus considered that the IATA regulations constituted an anti-competitive agreement between undertakings and allowed IATA and IATA member airlines to abuse their dominant position in the market for the distribution of air transport services.
In June 2003, recognizing that our complaint was well founded, the European Commission confirmed that the IATA Passenger Agency Programme infringed European competition rules in a number of areas. The national character of accreditation criteria was creating barriers within the European Internal Market and the proportionality of the
requirements had to be reviewed. The Commission also considered that the rules on ticket issuance through STPs (Satellite Ticket Printers), the organization of Billing and Settlement Plans (BSP) on a national or local basis and the rules on fares that create discrepancies depending on the agent’s location, had the effect of partitioning of theInternal Market.
After negotiations under the guidance of DG Competition, a number of important amendments were introduced in the IATA Passenger Agency Programme, some already implemented, but the bulk of them taking effect on 1st January 2006.
On accreditation criteria, the detailed local criteria on staff have been removed and the criteria on premises and security standards have been simplified. Moreover, an additional type of accreditation has been created, i.e the single accreditation for Europe, which will facilitate accreditation procedures for agents which operate in several States. On fairness and proportionality, agents’ rights to be heard when they are submitted to disciplinary measures, have been reinforced.
Concerning cross border activities in Europe, IATA has introduced European Union Satellite Printers, which permit agents to install implants in another Member State. Moreover, there will be a new possibility for cross border use of ticket stocks. Finally on access to air fares, the SITI/SOTO rules were removed; this ensures that IATA fares are
accessible irrespective of the place of sale and issuance of the ticket. However this does not affect access to fares set individually by airlines.
Said Norbert Draskovits, President of ECTAA, “We welcome these amendments and have thus decided to withdraw the complaint against IATA and IATA airlines. This withdrawal expresses ECTAA’s and GEBTA’s wish to continue the dialogue with IATA and IATA member airlines in a normal negotiation process and it is not a general and unlimited waiver of claim.”
ECTAA and GEBTA wish to continue this dialogue in order to finalise an agreement on outstanding issues, notably on the centralisation of BSP operations, a step forward on updating security standards and local financial criteria, improving fairness of agents’ rights and obligations under the Passenger Sales Agency Programme and Agreement, notably concerning access to public fares of IATA Member Airlines through practicable and appropriate systems with fair compensation for the services rendered. Finally, ECTAA and GEBTA are calling for modernisation of the management of the Passenger Agency Programme and for strengthened participation of travel agents in this management.
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