LEGAL
WORDS IAN SKUSE
OLLOWING THE INTRODUCTION OF GDS distribution charges by Lufthansa – the first airline to impose them – a complaint was made to the European Ombudsman that Lufthansa was in breach of the EU Code of Conduct on Computerised Reservation Systems. The complaint was made by the European Technology & Travel Services Association (ETTSA), claiming it “discriminated” against customers who used independent agents to book their tickets rather than using direct channels such as Lufthansa’s website. It said the practice was in breach of key provisions of the EU’s code of conduct on computerised reservation systems. However, that complaint has
F
been rejected by the European Commission. A further investigation is unlikely. Lufthansa was alleged to be in breach of EC Regulation 80/2009 when it imposed a ¤16 “distribution cost charge” on GDS bookings. ETTSA argued that, in effect, Lufthansa was discriminatory in favour of its own computer reservation system. It remains to be seen whether action is taken following the expansion of NDC to other airlines.
GET IT IN WRITING
As I outlined in the last issue (BBT, July/August 2018), business travel does not fall under the definition of a “package” under the new Package Travel and Linked Travel Arrangements Regulations 2018, which came into force in May this year. We await further clarification,
148 SEPTEMBER/OCTOBER 2018
The unintended consequences of new regulations are prompting reviews
STAY SAFE OUT THERE
so it remains imperative that business travel can only be exempt if the business travel concerned is sold under a “general agreement”. Not only does the TMC have to show that the customer is a corporate or that the sole purpose of the travel is for business, but it will also need to be able to produce a written agreement with the corporate to provide the business travel services. Without this, it seems TMCs could be responsible for overseas accidents and the performance of contractual services by their suppliers.
AIRLINE INSOLVENCY REVIEW The Department for Transport has issued its initial report regarding consumer protection in airline and travel company failures. The review was launched in April following the collapse of Monarch. There is an insurance for scheduled airline failures but it tends to be removed if an airline is in financial difficulty. The review recognises that when an airline fails, passengers should be repatriated and efforts should be made to keep the insolvent airline flying while a
THE INCREASE IN CARD FEES AND CHARGES TO RETAILERS IS ALARMING
rescue plan or sale process is implemented. The final report is expected soon.
HAS EU PAYMENTS SERVICES DIRECTIVE BACKFIRED? Payments Services Directive 2 was supposed to reduce the burden of the processing of card transactions both for retailers, with a reduction of interchange fees, and consumers by outlawing credit card surcharging. The ban on surcharging is in force, but there has not been an equivalent reduction in fees payable by the retailer. The British Retail Consortium says the increase in card fees and charges to retailers is alarming. The vast majority of these card payments benefit card companies. The UK Payment Systems Regulator has announced a review of the cost of card-acquirer services.
Ian Skuse is a partner in Blake Morgan’s Travel team (
blakemorgan.org.uk) He welcomes your feedback:
ian.skuse@
blakemorgan.co.uk
buyingbusinesstravel.com
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