Date: June 29th 2008

STATEMENT

For Immediate Release

BTC Urges Parliament to Protect Consumers, Small Business

Travel distribution loophole threatens higher airfares, less choice and poorer service

Brussels, Belgium, 29 June 2008--The Business Travel Coalition (BTC) today urged the European Parliament to continue to defend the interests of travellers and small business. EU member states are pushing hard for an early compromise deal on the revision of the CRS Code of Conduct, currently before the EU institutions. There is now a real threat that the Parliament will abandon its previously firm position safeguarding consumer interests.

The compromise focuses on a dangerous legislative loophole exposed in the Commission’s original draft under the definition of ‘Parent Carrier’ (Article 2 (g)). The Parliament text, backed almost unanimously by the Transport Committee, had established CRS ownership as a fully independent criterion when assessing parent carrier status. This takes into account the incentives for abuse which exist for airlines meaningfully participating in the capital and governance of a CRS and limits the discretion of the Commission.

Any weakening of the parliament position could immediately result in the reinforcement and creation of dangerous monopolies in CRSs in a number of European countries. Since the Commission’s declaration of last November, which made it clear that the CRS Code of Conduct applies to no-one, airline owners have been free to discriminate in favour of the CRSs they own and CRSs have been free to discriminate in favour of their owning airlines. Travellers all across the EU and beyond are, as a result, at risk of being subjected to higher fares, less choice and poorer service.

The Parliament has a strong hand going into the current negotiations. Giving up this position without securing any safeguards in return will result in a poor deal for consumers and small business across Europe.

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CONTACT BTC || Kevin Mitchell | 202-370-1871 | mitchell@BusinessTravelCoalition.com

About BTC
Founded in 1994, the mission of the Business Travel Coalition is to bring transparency to industry and government policies and practices so that customers can influence issues of strategic importance to them.





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