Brussels, 04/07/2005 (Agence Europe) - Just as the Commission revises the Code of Conduct for Computerised Reservation Systems (CRS) (ECC 229/89) and is examining how the market can be deregulated, travel agents and airlines were able to voice their opinions at a conference on 29 June organised by the BTC (Business Travel Coalition) “Computerised Reservation Systems in Europe - Towards a New Framework?.
Computerised Reservation Systems collect information on pricing and airline, hotel and car hire availability which it sends to travel agencies and web sites that manage reservations. The four main systems are Sabre, Galileo, Worldspan and Amadeus, which is the only system to still belong to big airline companies (Air France-KLM, Iberia and Lufthansa). 1989 rules aimed to prevent distortion of competition between airlines having their own systems and airlines that did not have them by obliging companies having a CRS system to provide access to all airlines for the same information (principle of equality and non-discrimination). Lufthansa therefore has to take part in the Galileo system although it still have a significant share in Amadeus (11.4%), failing which would mean that travel agencies in Germany would have no other choice but to use Amadeus for getting information on flights for this company.
These rules, however, have to be revised due to internet development which provides a new distribution channel for travel services but especially due to the involuntary effects these rules have generated. In this connection, the principle of compulsory participation does not enable airliners to use their market mower to negotiate better conditions with CRS. Total deregulation, as in the USA, should therefore help competition between CRS and airlines by providing a wider choice and lower prices for consumers. In December 2002, DG TREN proposed getting rid of obligatory participation and non-discrimination. Amadeus vice president David V. Jones wants this and considers that the participation of the three airlines to its capital does not affect its activities at all, as there are acting in their own interest. The report commissioned by DG TREN at the “Brattle Group in October 2003, clearly shows that in the case of vertical integration like Amadeus, or even a simple agreement 'an incentive to abuse market power exists”. Galileo and Sabre join British Airways and BTC in creating the C-FARE (Coalition for Fair Access to Reservations in Europe), which seeks to defend fair an healthy competition conditions for travel agencies and travellers alike. C-FARE already informed the Commission that it is opposed to total regulation in an open letter sent on 19 May to Commissioners Jacques Barrot (transport), Neelie Kroes (competition) and Markos Kyprianou (consumer protection). It is calling on the Commission to maintain the principles of obligatory participation and non-discrimination so that holding companies in CRS can transmit all their information to CRS competitors and that CRS in return will provide information in their favour. Galileo and Sabre state that 90% of reservations in Spain, 79% in Germany and 73% in France are done through Amadeus. In these conditions, the total disappearance of the Code of Conduct would have anti-competitive effects.