534 COMPETITION LAW IN TOURISM 4. IATA’S PLEA THAT IT SHOULD NOT BE PART OF THE PROCEEDINGS In its defence plea, IATA submitted that FATTA should not have filed proceedings against it, as it was not the legitimate defendant in the proceedings, as it could not interfere nor did it have any interest to act in any business arrangements or agreements that were carried out between the airlines and the travel agents, in particular on the commission payable by the airlines to travel agents. This was further explained by IATA’s representative, based in Rome, Italy, responsible for certain jurisdictions, including Malta, and who gave evidence in the relative proceedings. The representative had explained that IATA was, in fact, the undertaking which served both the airlines and the travel agents, through the “Passenger Agency Programme” (PAP). It was indeed the administrator between the two so that the travel agents could be authorised to sell airline tickets. IATA was merely an organisation which had no scope for profit, and neither was it constituted to act as a governing body. It was emphasised that IATA offered a payment system for airline tickets through an electronic system for accredited travel agents, which was known as the “Billing and Settlement Plan” (BSP). In fact, the selling of airline tickets around the world was either through direct sale by the airlines primarily through their own website or through travel agents who opted to enter into the Passenger Agency Programme (PAP), which was administered by IATA and which authorised the agents to sell airline tickets directly as authorised by the airlines. IATA’s representative, when giving evidence, insisted that it was up to the travel agents whether or not to enter into the Passenger Agency Programme7. Furthermore, anything related to the arrangements carried out between the airlines and the travel agents, including any commissions or compensations for services rendered by the travel agents by the airlines was not deemed within the remit and responsibilities of IATA. IATA quoted articles from the Passenger Sales Agency Agreement (PSAA) to highlight the above-mentioned submission, including: 7 The IATA Passenger Agency Program provides a system for the accreditation of travel agents that meet specific industry standards and financial criteria. Currently, there are some 56,018 IATA accredited travel agents operating in 207 countries and territories. The Passenger Agency Program and associated products and services simplify the business relationship between agents, airlines and other industry principals. IATA’s accreditation and coding system provides a standard method for agents to be recognised by both the travel industry and consumers. (Source – IATA Agency Program Fact Sheet).
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