The IATA Passenger Agency Conference (PAConf), the conference where IATA airlines take in camera decisions to change and rule their relations with…
The IATA Passenger Agency Conference (PAConf), the conference where IATA airlines take in camera decisions to change and rule their relations with the travel agents, decided during its meeting last July not to accept a new Passenger Sales Agency Agreement (PSAA) nor the package of resolutions which aimed at a more equitable and balanced relationship between travel agents and airlines.
The UFTAA Board at its meeting on August 10th noted that no attempt to reconvene the recessed PAConf. nor any formal proposals had been made to resolve the impasse. The Board concluded that the airlines and IATA were not interested in looking for a mutually acceptable and balanced solution.
The UFTAA Board thus strongly recommends national associations to suspend until further notice all formal dialogue with IATA and commended those who had already acted.
UFTAA will investigate the appropriateness of the antitrust immunity currently enjoyed by the airlines, which are detrimental to free competition. UFTAA will approach relevant authorities to initiate actions to amend the unanimity voting rule currently in force at PAConf., to allow travel agents to participate in PAConf. meetings and to further incorporate a Mediation procedure to settle differences in the decision-making process in such a way that the changes in the agreement or in the resolutions, which will affect the agent/airline relationship, correspond to mutual decisions as in any civilised commercial and legal relationship. UFTAA is actively supporting its members in their legal actions to defend their rights and legitimate claims, particularly those concerning unilateral reduction of remuneration, to achieve a fair and unbiased treatment by the suppliers. UFTAA will assist travel agents and associations in individual and class actions.
The UFTAA Board will seek justifications for the Accreditation fees paid by travel agents – close to 13 million US Dollars – to IATA annually as the service received in return has deteriorated or vanished over the years together with IATA’s credibility. It will also seek legal clarification to the role of travel agents acting as collectors of taxes and charges for the airlines without receiving relevant compensations for the work performed on their behalf.
UFTAA will intensify its contacts with the US Department of Transportation (DOT), the European Union and other relevant authorities to clarify their opinions with regard to the implications of the anti-trust immunity enjoyed by airlines and its negative consequences for the consumer and the travel industry.
UFTAA will call on airline CEOs to review the PAConf position and its detrimental effect on the relationship between travel agents and airlines, ultimately affecting the consumer choice and restricting free competition through misuse of monopsony power and oligopolistic behaviour.
In the present financial downturn of the airlines, the travel agency distribution channel is imperative for most airlines. Travel agents are unbiased professionals and still a primary sales source for the majority of airlines, and a viable and proven distribution channel operated at justified cost to the benefit of the consumer.
UFTAA strongly opposes the attempt by a few mega-carriers to destabilise and destroy, for their own short-sighted greed, a distribution system which offers a competitive choice and is convenient and reliable for the user.
Further escalating actions will be debated and decided upon at the forthcoming UFTAA business congress in Kuala Lumpur on October 20-24 attended by National Travel Agency Associations and agents from all over the world. The Congress will feature legal experts on anti-trust and contractual law in addition to other actual business topics.
UFTAA remains open to any reasonable proposal from IATA or its member airlines that will provide the Travel agents with fair and equitable conditions and offer the travelling public a professional and neutral distribution network.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
