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Any grant of immunity should be limited to protect competition

Travel agents file comments to antitrust immunity for Oneworld Alliance

ASTA and the Interactive Travel Services Association (ITSA) filed supplemental comments in response to oneworld Alliance’s (American Airlines, British Airways, Finnair, Iberia Airlines, Royal Jordanian Airlines) application for anti-trust immunity (ATI) to the U.S. Department of Transportation (DOT). In its comments, the two groups requested that “given [the] risk of significant competitive harm, any grant of immunity to the oneworld applicants should be limited to protect competition” and “that the Department carve out from any ATI grant any form of cooperation by the Joint Applicants in their dealings with independent travel distributors.”
 
ASTA and ITSA said that any granting of ATI that extends to dealings with travel distributors such as travel agents is likely to cause consumers significant harm “first, by ultimately reducing travel distributors’ bargaining power and marginalizing independent distribution through commission reductions and withholding inventory, and second by increasing fares paid by consumers as the number and effectiveness of independent travel distributors are reduced and consumers’ ability to find and compare competing airline service offerings becomes increasingly limited.”
 
The comments went on to note that whereas consumers and travel agents want lower fares and increased service, ATI and alliance status are not “factors in consumer choice – lower fares and more frequencies on nonstop flights matter the most.” Nor is ATI necessary to provide efficient coordination between carriers, the two groups explain. In fact, “the Joint Applicants utterly fail to show how efficiency requires immunized joint dealing with travel agents… the Joint Applicants do not make it clear that immunizing joint dealing with travel agents would benefit anyone other than the Joint Applicants.”
 
Consumers, as already noted, will also come out on the losing end should this ATI be granted for a variety of reasons, not the least which being that any resulting reduction in the “number and effectiveness of travel agents would also increase fare for consumers by reducing their ability to find and compare competing airlines service offerings.”

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Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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