Lobby group urges caution over CRS deregulation

Total deregulation of the computer reservations system in Europe would be bad news for consumers with airline retain shares in Amadeus, a new Brussels-based lobby group claims.

C-FARE, the Coalition for Fair Access to Reservations in Europe, cautioned regulators to “exercise care” in their current review of legislation governing the European computer reservation systems (CRS) industry.

Members of C-FARE urged the European Commission not to remove existing rules that protect consumers, travel agents, airlines and independent CRS companies against anti-competitive abuse by airline-owned CRS companies.

C-FARE members include Amadeus rivals Galileo International and Sabre Holdings plus AERTICKET, the Business Travel Coalition, ebookers, Navigant, Travel Overland and Tui4U.com.

In an open letter to commissioners Jacques Barrot (transport), Neelie Kroes (competition) and Markos Kyprianou (consumer protection), C-FARE warned that total deregulation of the CRS industry in Europe would be bad news for European travellers as long as Amadeus, Europe’s largest CRS, is owned by airlines.

The group’s executive director Brandon Mitchener said: “Europe’s not ready to abandon some basic, time-honoured consumer safeguards in the travel reservation business, and won’t be as long as major airlines continue to own or control key travel reservation services.”

C-FARE claims a deal to reduce airline shareholding in Amadeus “has done little more than slightly reduce the combined ownership of Air France-KLM, Iberia and Lufthansa by less than one percent, from 46.69% at present to 45.76%”.

It added: “The most recent data available indicates Air France-KLM would have a 22.88% stake under the new structure, Iberia 11.44% and Lufthansa 11.44%. 

“This represents a continuing level of influence and unhealthy economic incentives for Amadeus to favour its parent carriers and vice-versa. It does not in any way lessen historical concerns about the potentially damaging results of such vertically integrated airline-CRS relationships for consumers and competition.” 

Mitchener added: “The European Union recently adopted new rules granting European travellers greater rights regarding airline flight delays and over-booking. It would be most unfortunate if the EU at the same time were to reduce Europeans’ historic right to choose the reservation services that best serve their needs.”

No-one from Amadeus was available for comment.

Report by Phil Davies