Getting With the Program - Carlson Wagonlit Travel

24 Priorities for MobilityQuestion: Could you provide an update on regulation regarding global distributionsystems (GDSs) in Europe? Can the situation change if European airlines maintaina stake in Amadeus?Jacques Barrot: We are reviewing our guidelines on the relations between airlines andGDSs. The current rules are quite complex. We do not want to get rid of the rules butwe do want to make them more operational so we can ensure they are applied. Thequestion is whether we need to cut the ownership link between airlines and GDSs.That is a real issue and we need to weigh how difficult that would be. I propose that,in my conversations with the presidents of companies that hold major stakes in GDSs,and in one GDS in particular, I see whether they could withdraw in order to provide faircompetition among the GDSs. For me, this is an extension of everything we are doingto promote fair competition.Question: What power do you have to limit the growing number of air taxes?Jacques Barrot: We are making a proposal that will bring greater transparency for airportcharges—airports and airlines need to talk on a clear and transparent basis. We have toldthem that if they cannot manage this, we will require them to call in a mediator. Underour proposal, each member state will have to have a mediator to reach an agreementbetween airlines and airports. This is only part of the story, however, as there is anotherdebate continuing over payment for security measures. We have a major problem withmember states because the European Parliament wants clear rules on who pays forsecurity: the state, the airline, the airport or the traveler? There is real conflict betweenmember states, who say that Europe should not interfere with their business, and theEuropean Parliament, which wants the state to take on more of the cost. We will finda solution, but it is complex because each member state has its own way of managingsecurity. Finally, all the different taxes should be clearly indicated on each ticket. 11At the end of November, the European Union agreed to oblige companies to include all taxes and charges in advertised air ticketprices to customers. The European Parliament is expected to approve theses measures.