| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 5 |
| Copyright: Other |
GBTA launches fresh attack on BA over Internet scheme
The Guild of Business Travel Agents held its 2000 conference in Boston. Steve Jones reports
THE Guild of Business Travel Agents is poised for another showdown with British Airways over the launch of a new on-line agency.BA has teamed up with 10 airlines to offer tickets, hotel accommodation, car hire and insurance direct to the public through the site which will go live by the end of the year (Travel Weekly May 15).
But the GBTA is convinced the new venture will breach competition guidelines and is seeking legal action.
Speaking at the GBTA annual conference in Boston, US, chairman Don Lunn said the issue will be a top priority for the Guild.
“There is a clear danger here of a new kind of cartel emerging that could lead to vertical integration squeezing out the smaller carriers,” said Lunn. “We see it being seriously anti-competitive and could be in breach of European Commission law. We are taking legal advice.”
Lunn added that it will look to take action in conjunction with other industry bodies including the 10-member Guild of European Business Travel Agents (GEBTA).
“We shall also be speaking to ABTA,” said Lunn.
ABTA aviation head Sandy MacPherson has already said the association will monitor the situation.
The fresh hostilities against BA come as the GBTA attempts to thrash out an agreement with the carrier over its controversial payment structure.
Industry observers said a long drawn-out investigation into the Web agency will do nothing to assist the talks.
“While they are separate issues it will further strain relations,” said one source.
BA has teamed up with Air France, Lufthansa, Alitalia, KLM, Iberia, SAS, Aer Lingus, Austrian Airlines, British Midland and Finnair to set up the site. They have insisted they will remain competitors and will not share pricing information on the site.
On the warpath: Don Lunn, left, with Fred Clifford of Massachussetts Tourist Board, told delegates at the Boston conference that BA would face opposition over its new on-line venture