ACCC proposes to grant authorisation to IATA passenger agency program
The Australian Competition and Consumer Commission proposes to grant authorisation* to the International Air Transport Association for certain aspects of the IATA Passenger Agency Program on a transition basis, ACCC Chairman, Mr Graeme Samuel, said today.
The IATA Passenger Agency Program provides a system for the sale and distribution of air transport through travel agencies. The program was previously re-authorised in 2002. Authorisation for some aspects of the program ended in December 2006. IATA has sought an extension of authorisation for 18 months.
"The ACCC accepts there are overall net benefits in allowing a transition period until the end of February 2008," Mr Samuel said. "This will allow IATA to assess the Passenger Agency Program and possibly implement changes, with a view to reducing the extent to which it relies on authorisation."
The ACCC's draft determination is available from the ACCC website.
The ACCC is seeking submissions from interested parties in relation to its draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT, 2602. Submissions can also be lodged by email to adjudication@accc.gov.au.
*The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements, including agreements between competitors that limit their ability to deal with whom they choose or on the terms they choose (including price). Authorisation provides immunity from court action under the Act arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit flowing from the conduct outweighs any public detriment.
IATA is a non-governmental international trade association comprised of most carriers operating scheduled international air services in the transport of passengers, mail or cargo. IATA is incorporated pursuant to Canadian law.
Following the review of a long standing authorisation, the ACCC granted in November 2002 a new authorisation A90791 for the Passenger Agency Program. The program is embodied mainly in resolutions passed by IATA member airlines at IATA Passenger Agency Conferences.
The program has three core elements:
an accreditation scheme which enables licensed agents to sell tickets on behalf of airlines
a process of appointing agents to represent airlines and
a system for managing the reporting and payment of ticket sales.
The ACCC authorised certain resolutions it considered as having a higher anti competitive risk for four years until 5 December 2006.
The authorisation did not permit amendments or substitutions to be made to those resolutions without the consideration of the ACCC. The rest of the program was re authorised for eight years.
