UFTAA accuses airlines of greed and short-sightedness

Wednesday, 28 Aug, 2002 0

UFTAA has branded airlines greedy and short-sighted and called for national associations to suspend formal dialogue with IATA.

UFTAA directed its attack at larger airlines, which it criticised for their unwillingness to compromise. A statement said: “UFTAA strongly opposes the attempt by a few mega-carriers to destabilise and destroy, for their own-short-sighted greed, a distribution system which offers a competitive choice and is convenient and reliable for the user”.

The row between UFTAA and IATA broke out following the failure to agree on a new Passenger Sales Agency Agreement, which was presented by the Global Consultative Council during the Miami conference in June.

UFTAA’s chief executive, Birger Backman told TravelMole that it was up to IATA to make the next move. He said: “At the moment the system is paralysed, and the airlines are shooting themselves in the foot. No-one is benefiting from the current situation, and the airlines will realise this and have to come up with another proposal. The next stage for UFTAA is to wait and see what IATA comes up with”.

In the statement made by UFTAA, it questioned the credibility of IATA and said it would seek justifications for the accreditation fees paid by travel agents, which it estimated to be close to $13 million per year, paid for a service which it described as “deteriorated or vanished over the years”.

UFTAA also accused the Passenger Agency Conference (PAConf) of “misuse of monopsony power and oligopolistic behaviour”. In a letter published by TravelMole recently, Mr Backman argued that the unanimity voting rule in force at PAConf was outdated, and should be amended to the two third majority rule which applies at other IATA conferences. Despite this Mr Backman told TravelMole that the conference remains open and can be recalled with 45 days’ notice if IATA comes up with a sensible proposal.

Read our previous stories:
24-July-2002 ASTA supports call for review of IATA competition rules
19-July-2002 UFTAA calls for action over PSAA
9-July-2002 IATA in big trouble Down Under
2-July-2002 IATA row threatens industry status-quo