advisory

To: Travel Industry Colleagues

From: Kevin Mitchell (BTC)

Date: 19 July 2007

Re: EC CRS Code of Conduct Review

As you may have seen from Business Travel Coalition communications and press reports this week, the European Commission (EC) is virtually moments away from rendering hollow the CRS Code of Conduct that protects consumers, corporate buyers and TMCs vis-à-vis full airfare content, data privacy safeguards and pricing discipline in the marketplaces for travel distribution and air transportation services in Europe. Several travel organizations this Tuesday issued a joint Statement about this issue of strategic importance to the industry and consumers, which can be read at http://businesstravelcoalition.com/advocacy/statements/115.html.

The next step in our campaign to secure the attention of the EC, and ensure it reverses course, is to provide all travel industry participants—associations, airlines, TMCs, corporate buyers, etc.—with a vehicle to make their views known. Below is a Signatory Letter that BTC invites you to consider joining. Corporations and organizations in Europe and throughout the world will be Signatories to this letter.

For a comprehensive, timely backgrounder on this current development, please see http://businesstravelcoalition.com/advocacy/statements/crs_primer.pdf.

Press reports from this week can be found at: http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1003612405; http://www.businesstraveleurope.com/newsletter.php?typ=n&id=890&iss=155; and http://www.businesstraveleurope.com/newsletter.php?typ=an&id=151&iss=155.

If you wish to be a Signatory to the letter below, simply go to http://www.AdvancedSurvey.com/default.asp?SurveyID=53788 and provide your approval. The close for this invitation is COB Thursday, July 26.

Thank you in advance for your leadership on this issue of strategic importance to the industry!

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SIGNATORY LETTER

Thu Jul 19 17:34:25 2007

Matthias Ruete
Director General for Transport and Energy
European Commission
Rue de la Loi, 200
B-1049 Brussels

Dear Mr Ruete,

We the undersigned Signatories are writing to express our grave concern over recent developments related to the Commission review of the CRS Code of Conduct. It is increasingly clear that some in DG Energy and Transport (DG TREN) are intent on redefining the term “parent carrier” in the Code.
We understand that the Commission’s view is that the term “parent carrier” will be interpreted on a case-by-case basis and, revealingly, that the definition of a “parent carrier” requires control, even though the Code clearly states that ownership OR control triggers the parent carrier requirements. Such a definitional change would strip the Code of the basic consumer protections that have been overwhelmingly endorsed by consumers, business travellers and travel agencies in the stakeholder consultation process.

Compounding our concern over this ongoing regulatory redefinition is the overall consultation process. If the definition of “parent carrier” is being de facto changed through a new interpretation, then such a change should have been front and centre of the consultation process. Instead, no direct questions have been asked about the meaning of this definition or what a change would mean. Furthermore, we feel that we have been misled by the Commission which has publicly stated the need to maintain the basic core protections associated with “parent carrier” while apparently behind the scenes preparing to make them meaningless.

Contributing to this confusion is a recent statement by an Amadeus spokesperson, saying that they have not been subject to the parent carrier requirements for the past two years. We now understand more fully the Commission statement buried in the Commission Summary of Consultations: “There appears to be confusion among stakeholders about the interpretation of the definition of ‘parent carrier.’”

As you might imagine, we are extremely dissatisfied with both the content and procedural aspects of DG TREN’s management of this issue. It is clear that now, more than ever, the term “parent carrier” requires a precise definition and input from all stakeholders. Therefore, in the name of better regulation, we would urge you to consider reopening the public consultation to enable this matter to be discussed in a fair and open manner. This should not be a hasty process concluded during August but one which is keeping with the vital issues at stake for consumers and all other participants in the air transport and travel distribution markets.

We would be grateful if you could take the time to meet with us, as soon as schedules permit, in order to discuss the issues at stake and how the Commission intends to proceed further with the Code’s revision.

We look forward to your response.

Yours sincerely,

[Signatory]
[Signatory]
[Signatory]