Galileo International, Inc., responded to Northwest Airlines` proposal, announced Tuesday, to impose new ticketing fees on all domestic tickets…
Galileo International, Inc., responded to Northwest Airlines` proposal, announced Tuesday, to impose new ticketing fees on all domestic tickets issued through U.S. and Canadian travel agencies using a GDS.
Galileo announced that Northwest is in violation of its 2003 Preferred Fares Select (PFS) agreement. PFS participating carriers are expected to provide Galileo agencies with a level playing field. As a result of Northwest`s violation of its PFS agreement, Northwest will not be afforded the same benefits provided to participating carriers that honor their commitments under their PFS agreements, such as:
- A more prominent display for Galileo agencies;
- Access to Galileo low fare shopping and flight information tools;
- Access to the full PFS distribution discount.
These same benefits will be withheld from any PFS participating carrier that violates their agreement by charging Galileo agencies a fee on tickets issued through Galileo that is not also applied to tickets offered on the airline`s own Web site.
We have worked very hard to improve our position and overall relationship with carriers and have taken the lead in addressing industry concerns regarding distribution costs and content with innovative programs such as Preferred Fares Select, stated Ken Esterow, executive vice president, supplier services, Cendant Travel Distribution Services. We are disappointed that Northwest has unilaterally taken this action after they made a public commitment to `expand access to Northwest fares and content where it is economically viable for Northwest to do so` as stated when they joined Preferred Fares Select just last year.
Northwest`s actions unfairly disadvantage travel agents and ultimately, consumers, stated Mitch Gross, executive vice president and general manager for Travel Agency Services, The Americas. Galileo agencies and others recognize this action for what it is — essentially a fare increase which will be passed on to consumers. These agencies have indicated they will direct their business to those carriers that are supportive of the GDS distribution channel.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
