15 December 2008

TMCs and corporates sign letter slamming Lufthansa distribution deals

Over 100 travel management companies and corporate buyers have put their names to a letter slamming Lufthansa for abusing its dominant market position.

According to the Business Travel Coalition, 111 signatories from around the world have signed the letter regarding the carrierââ¬â¢s ââ¬Åâœanti-consumerââ¬~ Preferred Fares Programme.

ââ¬ÅâœThis is an outstanding result after only a few days,ââ¬~ said Kevin Mitchell from BTC.

ââ¬ÅâœComments by major corporate purchasers of air transportation services tell a story of Lufthansaââ¬â¢s abuse of its dominant market position,ââ¬~ he said.

ââ¬ÅâœIf large customers can be bullied, what does that portend for the 3.6 million small and mid-size enterprises (SMEs) in Germany, and the other 15.4 million SMEs throughout Europe?

ââ¬ÅâœThe competition and consumer protection agencies should be alarmed as Lufthansaââ¬â¢s dominance will only increase as it leads European airline industry consolidation.

ââ¬ÅâœMoreover, there is an application for expanded antitrust immunity for the Star Alliance before the US Department of Transportation, which in its current form could be potentially disastrous for managed travel programmes, especially in the US and Germany.ââ¬~

He said the goal was to secure 30 travel managers as Signatories by Christmas ââ¬Åâœso, we are substantially ahead of planââ¬~.

Signatories come from Germany, the UK, South Africa, El Salvador, US, The Netherlands, Switzerland, Scotland and France.

ââ¬ÅâœThe momentum we are rapidly achieving is simply outstanding. No longer will corporate purchasers be pushed aside; we are demanding our seat at the table and we will not stop until our interests are fully respected by Lufthansa," said Mitchell.

ââ¬ÅâœThe goal of the Signatory Letter below is to encourage Lufthansa to forge distribution agreements that are equitable for all distribution system participants, including the corporate buyer, and that preserve the efficiency of the present TMC channel. We deserve nothing less."

Agents can add their name to this letter at http://tinyurl.com/6xhgwg.

By Bev Fearis

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