Lufthansa`s questionable announcement is based on its dominant position in various markets, including the control it has over other airlines across Europe and its high influence in the Star Alliance.
UFTAA’s president, Joe Borg Olivier says that the amount of €16 that Lufthansa is planning to charge agents for booking reservations in GDS is significantly higher than the approx. € two the company is actually paying the GDS’s. This difference proves the decisiveness and unfairness of Lufthansa. From first look it seems that Lufthansa is (mis)using the travel agents as a shield in its commercial battle with the GDS’s. The UFTAA “Airline Matters & IATA Committee” believes that the amount of €16 is unchargeable via the IATA BSP system since it is a administrative charge.
Sunil Kumar, acting president, TAAI on Lufthansa’s announcement, “It is shocking that a leading airline that has been well promoted by the agency fraternity for several decades now, is resorting to unfair practices of taxing agencies for using a GDS to make a reservation to Sell Lufthansa. This is highly objectionable and an extremely agency-unfriendly announcement. The very foundation of a trustworthy marketing relationship with those who have promoted the airline is being harmed. The response from our members is extremely adverse. Lufthansa must immediately withdraw this announcement and hold a dialogue with the agency associations.”
Our opinion is that the charge for the GDS booking through GDS’s should be rejected by the travel agents as a dispute of inappropriate using of the BSP system until clarified. UFTAA board has asked for a legal opinion to find out whether Lufthansa’s initiative has a legal implication on the relationship between agents and the Lufthansa Group in using the IATA system.
The chairman of UFTAA “Airline Matters & IATA Committee”, Mr. Yossi Fatael will ask that this urgent issue will be discussed in the forthcoming PAPGJC meeting that will take place at the end of June in Geneva.