| Journal: TWUK | Section: |
| Title: | Issue Date: 29/05/00 |
| Author: | Page Number: 26 |
| Copyright: Other |
US regulators to probe Web’s impact on agents
US REGULATORS are lining up to investigate whether travel Web sites set up by US and European carriers are anti-competitive.The Department of Justice has confirmed it is to launch a probe into whether joint sites set up by airlines including British Airways and British Midland harm agents.
A US Senate group is also holding a hearing into the sites on June 22. Transportation departments and federal trade bodies are also looking into complaints by agents against the airline Internet options.
The positive action by the US authorities will lend weight to the Guild of Business Travel Agents and ABTA which are both investigating the legality of airline-owned travel sites.
Both UK trade bodies are consulting lawyers and their European partners to see if the 11 airline European site set up by BA, Lufthansa and others will undermine agent sales. The site, which will sell flight tickets, accommodation and car hire, will be launched this summer.
The airlines have claimed they will not undercut the trade and say they are reacting to demand.
However, agents fear the airlines will put cheaper fares on the Web site than are available to retailers and will use the Internet to step up direct sales activity.