TMCs and corporates sign letter slamming Lufthansa distribution deals

Monday, 15 Dec, 2008 0

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 carrier’s “anti-consumer” Preferred Fares Programme.

“This is an outstanding result after only a few days,” said Kevin Mitchell from BTC.

“Comments by major corporate purchasers of air transportation services tell a story of Lufthansa’s abuse of its dominant market position,” he said.

“If 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?

“The competition and consumer protection agencies should be alarmed as Lufthansa’s dominance will only increase as it leads European airline industry consolidation.

“Moreover, 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.”

He said the goal was to secure 30 travel managers as Signatories by Christmas “so, we are substantially ahead of plan”.

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

“The 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.

“The 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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Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.



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