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MEPS rap EC over GDS surcharge

The transport and tourism committee of the European Parliament has slammed the European Commission for failing to rule on complaints against airline surcharges on GDS bookings and demanded an explanation.

The Committee on Transport and Tourism heard testimony on ‘Airline distribution channel discrimination’ in July.

Chair of the committee, French MEP Karima Delli, said: “I’m really surprised at how slow the Commission is moving. It’s difficult to understand.”

The European Technology and Travel Services Association (ETTSA) and other industry associations submitted complaints to the EC against the Lufthansa Group of airlines in September 2015.

ETTSA argued Lufthansa breached provisions of EC Regulation 80/2009 on a code of conduct for CRSs when it imposed a €16 ‘distribution cost charge’ (DCC) on GDS bookings from September 1 that year and simultaneously launched an online portal, LHGroup-agent, through which intermediaries using GDSs could avoid the fee.

Delli told Christophe Dussart of the European Commission’s Department for Mobility and Transport, DG-Move: “For three years you had a complaint. You examined it. You have not said Lufthansa was acting illegally but you have explained the Code of Conduct has to be revised.

“The commission has been dragging its feet. Why has it taken three years to examine this complaint? To what extent and how quickly will we see a revision of the Code of Conduct?”

Dussart told the committee: “There will be a public consultation in 2018. In March 2019 we will have conclusions based on the consultation, which means we can’t discuss a new text in the current Parliament, it will have to be during the next European Parliament.”

Asked why the Commission had not ruled on the complaint against Lufthansa, Dussart said: “The complaint against Lufthansa and its surcharge was examined.

“The Commission issued an opinion. The complainants responded to the Commission. The case is still pending. I can’t give a fuller answer.”

ETTSA secretary general Christoph Klenner told the committee: “Other airlines have followed [Lufthansa], as you know.

“This large German group of carriers has imposed [this surcharge] on indirect bookings for almost three years. Based on the group’s annual report, almost €1 billion has been paid by customers of Lufthansa over the last three years just in the surcharge on tickets.”

Delli told Dussart: “I’m not satisfied with the response from the EC. We need an answer. This is just the start. We’ll be talking at greater length about this.”

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