EU to simplify flight reservations, sees price cuts
European Commission wants to revise codes applying to reservation systems, but some argue it will give airlines too much power.
Under the EU executive's proposal on Thursday for a revised code of conduct in the sector, CRSs and airlines will be free to negotiate the booking fees charged by the reservation systems and the information content provided by the airlines.
The plan, which will now be scrutinized by the European Parliament and EU transport ministers, would thus introduce pricing freedom, the Commission said.
"More competition in this market means lower distribution costs and airlines offering more travel options via the CRSs," EU Transport Commissioner Jacques Barrot said in a statement.
"Consumers who use the services of a travel agent for their airline bookings will enjoy an increased offer while still being protected against any abuse or discrimination," he added.
He said the new rules, which mark the first revision in 20 years, would ensure all booking channels competed on a level playing field.
CRSs provide subscribers with up-to-date information about flight availabilities and fares. They allow travel agents to find flights, compare prices, and make immediate confirmed reservations on behalf of their customers.
But some industry groups denounced the scheme, saying it would strengthen the grip over the market by Europe's largest reservation system Amadeus, in which German air carrier Lufthansa, Franco-Dutch Air France-KLM, and Spain's Iberia hold a 46 percent stake.
"The Commission's proposal gives Amadeus and its owners a license to engage in abuse," said Brandon Mitchener, director of the Coalition for Fair Access to Reservations in Europe.
He said Amadeus would be free to provide Lufthansa, Air France-KLM, and Iberia superior fare loading processes and privileged access to technology for the display and sale of their transportation at the expense of consumer choice.
This is because the new rules do not define clearly the obligations of a "parent carrier" in the reservations systems, he said.
Another group, Business Travel Coalition, said it was surprised the Commission was making a proposal it branded flawed while fighting to improve the quality of information on Web sites selling airline tickets.