Competition Law in Tourism

578 COMPETITION LAW IN TOURISM which will create an environment for higher prices, restriction of choice, and less transparency”. The aforementioned DOT decision, which is vital for the market and for IATA, analysed IATA Resolution 787, drawing, among other details, the following conclusion: “1. Scope of approval Tentative Conditions on Approval a) Approval of Resolution 787 does not constitute approval of any agreement among IATA member airlines regarding any method or business model of distributing air transportation, nor restrict the use of any channels available for the distribution of air transportation, including indirect distribution by other than airlines. b) Any future agreement among IATA member airlines regarding business models for the distribution of air transportation shall not be implemented without prior compliance with any applicable government approval or notification process”. That is, IATA was authorised, as of the DOT’s decision, to continue the activities related to the NDC, with the qualifications mentioned in the excerpt from the above decision. Since then, IATA has been developing the NDC project with various pilots, involving airlines and system integration to test the functionality and effectiveness of the ‘standard’ developed by IATA. 2.3. Does the NDC Help Travel Agencies? In the Acte Abroad Summit Rio, IATA’s Brazilian division announced, through its relationship manager, Mr Jefferson Simões, that there are already 60 airlines certified with the NDC and that the association would reach 20% of global airlines by 2020. News like this, on the one hand, shows that IATA’s tests are in full development, but, on the other hand, if by 2020 the intention is to reach onefifth of airlines, it is the same as saying that, in 2020, 80% of the airlines would not be ‘ready’ or with the use of the NDC. In brief, this analysis shows facts such as those currently occurring involving the GDSs, when several airlines, which already have services provided via the NDC, are demanding from travel agents a fee for booking air segments through a GDS. However, there is no such fee if the travel agency books directly on the airline’s website or through the NDC if already available to that travel agency.

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