DOT TENTATIVELY APPROVES IATA RESOLUTION 787

July 18, 2014

On May 21, 2014 DOT issued an Order to Show Cause in Docket OST-2013-0048, in which it tentatively approved IATA’s controversial Resolution 787.

DOT noted two broad categories of public benefit in approving the resolution: (1) that Resolution 787 would create modern, industry-wide technical standards and protocols for data transmission throughout the distribution chain, which would subsequently promote efficiency, cost savings, and innovation for consumers; and (2) that the use of common technical standards would make it easier for consumers to compare competing carriers’ fares and ancillary products across multiple distribution channels, which would in turn increase transparency, efficiency, and competition among airlines.

Should an order be issued by DOT the following conditions will be imposed:

Scope of approval

  • 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.
  • 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.

Use of Other Data Transmissions Standards

  • Approval of Resolution 787 does not constitute approval of any agreement among IATA member airlines to require the use of any particular data transmission standard(s).

Backwards Compatibility/Other Standards

  • Any communications or message standards or protocols developed under Resolution 787 shall be open standards, meaning useable by distributors of air transportation and      intermediaries in the distribution of air transportation, including CRSs and other aggregators, on a non-discriminatory basis.
  • Approval of Resolution 787 does not constitute approval of any agreement to prohibit individual IATA member airlines or groups of such airlines from continuing to utilize any communication or message protocol, including existing standards.
  • Nothing in the approval of Resolution 787 shall be deemed to be an approval of either a restriction on backwards compatibility or a restriction on development of a communications or messaging standard that is not backward compatible.  Further, nothing in Resolution 787 shall be construed to inhibit the ability of distributors of air transportation to use other standards, including existing standards, in combination with any standard developed under Resolution 787.   Airlines and technology service providers are free to pursue backward compatibility of esolution 787 communications or message standards or protocols based on their particular business needs.

Privacy and anonymous shopping

  • Approval of Resolution 787 does not constitute approval of any agreement among IATA member airlines to require the disclosure by any passenger of personal information of any kind.  In addition, approval of  Resolution 787 is conditioned on the airline or ticket agent that is requesting and receiving the personal information of the buyer of air transportation following its privacy policy in effect at the time the request is made for the sharing and storage of personal information.

Data ownership

  • Approval of Resolution 787 does not in any way address the issue of data ownership.

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