In December 2003 the Commission decided to request further information from 18 European airlines…
In December 2003 the Commission decided to request further information from 18 European airlines [1] about price differences for tickets on the basis of national residence, especially in Internet sales (see TravelDailyNews). Thanks to the Commission initiative, these price differences have mostly disappeared.
In December 2003, the services of the Commission wrote to 18 European airlines, asking each of them whether it charged different prices for exactly the same ticket depending on the customer`s country of residence, and if so, why.
The initiative of the Commission services was in response to an increasing number of complaints from citizens who felt that they had been discriminated against when buying plane tickets, especially via the Internet. Airlines typically used the postal address or the credit card address to determine the residence of a customer. Depending on the country of residence, some then quoted different prices. Price differences were as high as 300%.
The complaints received by the Commission concerned identical tickets. The contested price differences were thus not linked to the date of purchase, the possibility to change one`s reservation or to any other service feature which could explain varying costs. The price differential seemed to be exclusively linked to the place of residence of the buyer.
By the end of April, the Commission had received answers from 16 airlines among the 18 which it contacted
[2]. While most companies indicate that they do not have any restrictions in place, several carriers have admitted that there may have been restrictions in the past, but that these restrictions have now been eliminated. Test bookings show that indeed most of the restrictions observed last year do not exist anymore.
In rare cases some restrictions may still exist for certain paper-based tickets, but all electronic tickets are now available throughout the EU without discrimination, except – in some cases – for differences in handling fees. As a result, price levels are now similar for all EU residents.
The Commission will continue to monitor the situation to ensure that price discrimination on the basis of residence will not occur again in the future.
[1]
Aer Lingus
Air France
Alitalia
Austrian Airlines
British Midlands
British Airways
Finnair
Iberia
KLM
Lufthansa
Luxair
Meridiana
Olympic Airways
Spanair
SAS
SN Brussels Airlines
TAP
Virgin Atlantic
[2] Alitalia apologised that due to the current problems that they encounter they were not in a position to give a proper answer. Olympic Airways did not give any answer at all.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
