FTC looking into airlines practices
Published on: 4/6/08.
by CAROL MARTINDALE
THE POSTING of attractive fares on the Internet by airlines is being investigated by the Fair Trading Commission (FTC).
An official complaint by the Travel Agents Association of Barbados, who said they were being denied these cheap fares, has prompted the investigation.
President of the association Indar Weir told the SUNDAY SUN on Friday that the industry was moving towards an anti-competitive environment, a practice that must be managed by the FTC.
"Oftentimes, the airlines are moving to an anti-competive environment where the fares they are putting online are denied to travel agents. In an anti-trust jurisdiction like ours, you ought not have an abuse of a dominant position or anti-competitive practices," he said.
"There is a breakdown in partnerships where the airlines are cannibalising the industry by trying to take the business away from travel agents. They are offering sets of fares through the Internet that they are trying to deny travel agents access to," he said, charging that some fares were even being loaded at night.
The FTC, through its Press office, confirmed that it had received a formal complaint from the group of agents as recently as last week. The FTC said they were now looking into the matter. Weir said it was necessary to take this step as travel agents were contracted and controlled by the airlines through their governing body International Air Transport Association (IATA).
"An accredited travel agent is absolutely controlled by the rules and regulations of IATA. IATA is a monopoly and it means that control is an abuse of a dominant position because those fares that airlines are offering that travel agents cannot get means it is anti-competitive," he said.
Weir charged that all airlines were guilty of this practice.
"They (airlines) will continue to get away with it unless the anti-trust legislation in Barbados and Jamaica is tested" he said.
Airlines are reporting a growth in web bookings, with some noting as much as 60 per cent increases.
Paul Pennicook, senior vice-president of commercial services on Air Jamaica who said their online bookings had doubled last year, said some of the lowest fares on selective routes were posted on their website.
Customer service manager for Air Canada John White who said that about 50 per cent of their passengers booked online, said in order to stimulate web bookings, airlines made them more attractive.
carolmartindale@nationnews.com
*Please see also Page 23A
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