EU moves to reduce air fares

The European Union has proposed measures to reduce the price of airline tickets and give consumers more environmentally friendly options.

It has recommended changes to the the code of conduct for the Computerised Reservations Systems (CRS), which is used by high-street and online travel agents to book air tickets.

If the changes, which will go before the European Parliament next week, are passed consumers booking via travel agents could see ticket prices drop by 10 per cent, the EU has said.

CRS is made up of three separate booking systems. These are Port Travel, Sabre and Amadeus, which is part owned by Air France, Iberia and Lufthansa.

Currently airlines that own stakes in CRS are allowed to sell reduced-price tickets through the system of their choice, in turn passing the profits to that one system. MEPs believe that this is unfair and "stifling costs and competition".

Timothy Kirkhope MEP said at a conference: “It is inevitable with a system like this, where one CRS system is owned by an airline, that it will have a vested interest.

"They need to be transparent and share their ticket prices with all travel agents.”

He said the proposed changes would also help to increase choice at the time of booking with a travel agent.

“People will be able to see all ticket fares available at their cheapest prices and the final price they must pay,” he added.

He also said that if the change is passed then consumers could expect to see a difference “in time for next May's holiday season”.

The changes would also ensure that travellers are presented with more environmentally friendly options for their travel, as the CRS systems will have to show how much carbon dioxide is emitted per journey. If the travel time is less than 90 minutes long then an alternative means of transport, such a train journey, must be recommended.

The changes would only apply to companies using the CRS system. Others, including Opodo and Lastminute, would be unaffected.

Amadeus, Air France, Iberia and Lufthansa would not comment on the proposals, saying they would wait to see the outcome of the vote next week.

David Marshall, head of policy and communications at ABTA, said: "Anything that makes life easier for consumers in terms of cost transparency is a good way forward."

See also:

Ryanair cancels "illegal" bookings

Airline to take action against price comparison sites  18 Aug 2008

Airlines react with dismay to EU vote

European Parliament rules aviation should be included in Emission Trading Scheme  09 Jul 2008

Can airlines actually reduce their emissions?

With the EU's cap-and-trade scheme to be extended to include airlines from 2012 the race is on for aviation to find a way to tackle its carbon footprint  30 Jan 2008

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