Brussels, 05/09/2008 (Agence Europe) - On the basis of a compromise negotiated with the Council and European Commission, the European Parliament, on Thursday 4 September, gave first reading approval to the regulation to modernise computerised reservation systems (CRS) as proposed by the Commission last November (see EUROPE 9544). The report by Timothy Kirkhope (EPP-ED, UK) was approved by a large majority of MEPS - 496 votes to 103, with 23 abstentions - despite the call from the PES and ALDE groups to return the issue to the transport committee. This piece of legislation, which will, then, be adopted after this first reading, will boost competition and lower distribution costs by some 10%, Parliament says.
While retaining the partial liberalisation of the code of conduct for the systems, as proposed by the Commission, the compromise negotiated at the informal trilogue amends the definition of “parent carriers”, in an attempt to ensure fair competition between carriers, whether they have a CRS or not. It states that companies having shares in a CRS can only be considered to be parent carriers insofar as they have the power to decisively influence company strategy. Parent carriers thus defined will come under a special regime guaranteeing fair competition and non-discriminatory access to information. Thus, unless there is no reciprocity on the part of CRS competitors, parent carriers will have to provide other CRS with the same information on timetables, tariffs and available seats on their own transport products, and will not be able to refuse a reservation made through another CRS. The text requires system vendors (travel agents or any other body using a CRS) to reveal the existence and the extent of any direct or indirect stake an air carrier or a rail operator has in the seller, or vice versa. It allows air companies to negotiate agreements with travel agents to use their reservations and sales data for commercial use. It requires the CRS to display all the fares, taxes and surcharges that are “unavoidable and foreseeable at the time when shown on the display” and also information on greenhouse gas emissions (average CO2 emissions per person in grammes and per kilometre) and fuel consumption per flight (average fuel consumption per person per 100km). Currently, in Europe, three companies, Air France, Iberia and Lufthansa hold a 23%, 11% and 11% stake respectively in the Amadeus CRSD, without any decisive influence being shown.
The reference to this term (“decisive influence”) has brought criticism from the International Air Passengers' Association (IAPA) and Business Travel Coalition (BTC) and has almost made the negotiated compromise fail - some members of the ALDE and PES submitted a request to refer the text back to the transport committee (referral rejected by plenary by 300 votes against, 256 in favour and 37 abstentions). “Decisive influence is a term that is legally ambiguous and creates a legal void for airlines that have a seat on the CRS council”, the two associations write in a letter addressed to MEPs on Monday 1 September. They affirm that representation at the CRS council is sufficient for establishing the status of associated carrier. A number of lobbies are seeking to compel those which created, in Europe, the largest CRS to come out of a managing board, retorted Gilles Savary (PES, France) during the debate before the vote. He went on to add that it would be very serious because “we have never done anything other than edict competition rules and control arrangements”. The Commission will carry out an analysis to determine the influence of airline companies that are part of or that hold a stake in a CRS. According to Mr Kirkhope, the compromise was approved by all parties and its introduction will bring “lower air fares, more choice and greater transparency”. (A.By./rt/jl)