AMADEUS RESPONDS TO RECENT IATA CLAIMS IN DOT ADVISORY COMMITTEE ON TRANSPARENCY OF ANCILLARY SERVICE FEES PROCEEDING
July 12, 2019
Amadeus, one of the industry’s leading Global Distribution Systems (GDSs), responded on June 4, 2019 to comments made by IATA at the April 2019 Aviation Consumer Protection Advisory Committee meeting. In a five page letter to the DOT Office of Aviation Enforcement and Proceedings’ Assistant General Counsel, Amadeus responded to a number of statements made by IATA; most notably that Amadeus is “holding back” or otherwise hindering the development of IATA’s New Distribution Capability (NDC), which is an internal travel industry communications standard that IATA has been developing and promoting. Amadeus highlighted several important facts, including that the NDC was developed by IATA without any travel agency or GDS participation, that the first sixteen versions of the NDC lacked a number of essential capabilities for travel agents, that Amadeus has been actively engaged with IATA and other industry stakeholders on the project, and that Amadeus is helping airlines to develop NDC-based solutions that satisfy airlines, travel agents, and the larger aviation industry as a whole.
In response to IATA statements that GDSs are a roadblock on innovation, Amadeus noted that it has invested EUR 3 billion in research and development since 2015, and ranks as the second-largest research and development investor in the Software & Services sector in Europe. In response to a statement by IATA that GDSs exert significant market power, Amadeus highlighted that less than one third of airline bookings are made using a GDS (most are done via airline websites, ticket offices, agency portals, etc.). Regarding a reference by IATA that GDSs engage in “monopoly business practices” Amadeus responded by stating that it has less than 20% of the airline distribution market, and is strictly regulated under the EU Code of Conduct for CRSs, which mandates non-discriminatory treatment of airlines and travel agents, and that its business is fundamentally focused on providing a comprehensive and unbiased distribution service.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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