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European CRS deregulation warning
The removal of computer reservations system safeguards as part of planned deregulation in Europe could turn agents into “mere dealerships for dominant airlines,” a leading business travel group warns.
The Business Travel Coalition has called on the European Commission to maintain “basic standards” against abuse as it considers changes to regulations governing the CRS industry in Europe.
BTC chairman Kevin Mitchell said: “Without these safeguards, it’s entirely likely that full deregulation in Europe would result in turning CRSs and the travel agents they automate into mere dealerships for dominant airlines.
“Reasonable regulation, on the other hand, could enhance competition while still protecting consumers.”
The coalition is particularly concerned about the continuing airline involvement in Amadeus, with Air France-KLM, Lufthansa and Iberia holding almost 47% of shares in the GDS’s parent company despite Amadeus becoming a privately-held entity.
BTC urged the Commission to retain rules that forbid carriers that own CRSs from refusing to participate fully in competing systems “lest the end result be a denial of widely available travel content and a CRS monopoly in many EU markets”.
It also called on the Commission to consider a requirement for non-discriminatory treatment of the flights of competing airlines in Europe.
The coalition added: “BTC feels strongly that Europe would be ill advised to completely abandon safeguards against abuse by carrier-owned CRSs and by their airline owners as long as one of Europe’s largest CRSs, Amadeus, remains owned in part by three of its largest airlines, Lufthansa, Air France-KLM and Iberia – each of which already benefits from a dominant position in its home market.”
Report by Phil Davies
Phil Davies
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