ASTA supports call for review of IATA competition rules

Wednesday, 24 Jul, 2002 0

The American Society of Travel Agents has joined the list of influential organisations fighting the rejection of a new Passenger Service Agency Agreement by IATA airline members.

The airlines rejected a new more agent-friendly agreement , the result of two years work by the Global Consultative Committee (GCC), at the recent Passenger Agency Conference in Miami. Although the issue does not have a direct impact on agents in the US, ASTA said it clearly shows the problems agents face when the airlines choose to act collectively against them.

Recently re-elected ASTA president and chief executive Richard Copland said: “Air carriers participating in IATA have been and continue to be allowed to communicate on competitively sensitive issues. ASTA calls on governments around the world to review the antirust immunity granted those carriers in light of the negative impact it has on consumers.”

Meanwhile the Universal Federation of Travel Agents’ Associations (UFTAA) has called on competition authorities around the world to review IATA’s immunity to antitrust legislation following its rejection of a new agreement.

In particular UFTAA calls for an end to the unanimous vote rule, which it says has “effectively enabled destruction of any positive development.”

According to UFTAA chief executive Birger Backman: “It is becoming clear that a few mega carriers – mainly from the USA but also some others – are attempting to destabilise the distribution system for competitive reasons.” Click here to see the UFTAA letter in full.

See our previous stories:

09 Jul 2002: IATA in big trouble Down Under
09 Jul 2002 The TravelMole Interview: Bruce Bishins, Genesis TDS
02 Jul 2002 IATA row threatens industry status-quo

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