p6 news Apr24 22/4/09 21:12 Page 6
news
ttglive.com
BA and American
‘omitted key files’
VIRGIN Atlantic has accused British Airways
and American Airlines of withholding “highly
relevant” documents in their trust immunity bid.
The airline is calling on the US Department
of Transportation to take action as BA and AA
Virgin slams BA’s
seek the immunity that would allow them to
co-operate over schedules and prices.
BA rejected Virgin’s claim, saying it was a
crude attempt to delay a decision.
agent incentives
The US government asked BA and AA to
submit evidence relating to their request for
anti-trust immunity in December. Virgin remains
convinced there are “missing materials”.
Martin Ferguson.
A BA spokesman said: “Transatlantic routes A Virgin Atlantic spokesman said: “The
VIRGIN ATLANTIC has threatened legal action have been highly competitive for many years. submission appears to omit scores of key
against British Airways, claiming it suspects its “The Open Skies agreement has further documents, including email attachments and
rival is abusing its dominant position to increased competition on routes between Europe missing pages, that would appear to be highly
incentivise agents. and the US, which are among the most competi- relevant to this case.”
TTG has learned that BA has started agreeing tive in the world. No single carrier or airline Virgin believes anti-trust immunity would give
new incentive programmes with agents on alliance dominates those markets.” the carriers further dominance on transatlantic
transatlantic flights. A spokesman for Virgin Atlantic rubbished flights to and from Heathrow.
In 1999, BA was restricted to paying agents this claim. “We are watching and know the regu- It estimates BA/AA would have more than 60%
only for the volumes sold on routes after a court lators are aware of BA’s behaviour,” he said. market share on services to JFK, Chicago, Boston
case. However, trade sources have told TTG “The original court ruling is still right and and Miami.
BA has resumed the practice of offering should still stand. If necessary we will find A spokesman for BA said it had provided
incentives for volume growth. evidence and mount a fresh complaint. the information requested, adding: “This latest
Rival carriers now fear this will see a return “They have been found guilty before and will filing by Virgin Atlantic
to the days when BA was accused of putting be found guilty again.” appears to be a delaying
pressure on agents to favour the airline on other No senior sources at travel agencies were tactic.
routes to meet targets. prepared to comment on the new BA deals, due “We firmly believe
This led to the European courts finding to their commercial sensitivity. approval of our anti-
the airline guilty of abusing its position as the However, TTG was told they were welcomed by trust immunity applica-
dominant carrier in 1999, forcing it to withdraw agencies that book large volumes of BA flights tion and joint business
agent incentives. and which have the potential to grow volumes. agreement is the
Following Open Skies in March 2008, BA no quickest way to bring
longer considers itself the dominant market force. ■ Southampton airport marks 100 years, p24 benefits to customers.”
Bath fury at Iata bond demand
TTG that Iata has voted to review its agent
bonding policy.
Alan Bowen, legal adviser for the Association
BATH TRAVEL boss Stephen Bath during these times. It’s as if they of Atol Companies, said agents hoping to get
(pictured) has accused Iata of risking want to put us out of business.” refunds through the courts after the rule change
putting firms out of business over The agency was ordered to were unlikely to succeed. But he said Iata could
its strict application of travel agent pay the security on the basis it issue refunds in the future.
bonding rules. breached Iata’s net asset deficit test Chris Photi, senior partner at accountancy
The former Abta president revealed – despite making millions of pounds firm White Hart Associates, has forced Iata to
Bath Travel was forced to pay a in profit in 2008. withdraw bonding requests from a number of
£2.5 million bond last year for the first Bath branded Iata a “faceless agencies in the past six months.
time in half a century. organisation” and said he was Speaking at an Abta legal seminar this week,
“We have been trading since 1924 and have frustrated by its “non-negotiable” approach. he said: “Iata is a useless organisation to get any
been Iata-accredited for more than 50 years, and “We sent a delegation to London to speak to information from. If you get a reply and under-
we have never had to pay a bond,” he said. the UK representative but he told us there was stand it, you’re a better man or woman than me.”
“It is ludicrous that profitable agencies are nothing he could do. No discussion,” he added. Iata has refused to speak to TTG despite
being forced to fork out such huge cash bonds Senior travel industry sources have told repeated requests.
06 24.04.2009
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