President Romano Prodi
Cabinet of the President
European Commission
B-1049 Brussels
BELGIUM

Dear Mr. President:

The creation of the European Union and the efforts of the European Commission have advanced the economic growth of its member countries in just a few short years. By developing an economic agenda based on the common interests of all members, commerce, investment, and corporate growth have reached incredible peaks. And yet there remains one regulatory authority that has failed to match the vision, agenda, and achievement by the EU and the EC.

As representatives of one of the largest segments of commerce in the EMEA region -- the business travel sector, we are compelled to advise you that the International Air Transport Association is costing European companies a conservative billion euros annually through outdated regulations and procedures. Many of these predate modern business practices and technological advancement made possible by the founding principles of the EU.

Advances in technology, progressive legislation, and economic restructuring have introduced the potential for new efficiencies resulting in significant cost savings. Airlines within the EU are aggressively capitalising on these efficiencies to cut distribution costs. Yet, travel agencies and corporations are unable to maximise efficiencies because the current IATA regulations have failed to adapt to new market potential, while hindering business and increasing costs.

We the undersigned respectfully request the EC to address IATA's reluctance to reform its regulations and to evolve as most agencies and authorities have in the last two decades. We recognize that progress is being made but we ask the EC to accelerate this evolution. Of primary importance, IATA must consider two points that directly impact the cost of ticketing and airfares for corporate consumers, currently struggling toward profitability in the current global marketplace. These are:
  • Ensuring the continued modification of the tariff structure to enable standardised faring regardless of booking or ticketing location
  • Removing cross-border booking and ticketing restrictions
Three other points that hobble airline and travel agency profitability must also be addressed, as these companies are also facing hardship (and passing unnecessary costs to the corporate consumer). These are:
  • Eliminating need for country-specific BSPs and implementing a pan-European BSP
  • Standardising IATA accreditation requirements across Europe
  • Standardising and simplifying the application process across Europe
This petition was initiated by travel management groups, such as CTAG and the EMEA members of the Association of Corporate Travel Executives. Founded in 1988 as the educational and research resource for the global business travel management profession, ACTE has more than 2,500 members in 37 countries.

The Corporate Travel Action Group (CTAG), with the support of ACTE, stands ready to assist the EU and the EC in any way you may deem helpful. We have made the same offer to IATA -- several times. Each of the undersigned names (below and attached) represents a company, an association, or a private citizen who endorses this message and the changes to outdated IATA regulations.

Thank you for your consideration and assistance.

Regards,

Garth Jopling
President/Association of Corporate Travel Executives

Nadine Dewart
Chair/ACTE EMEA Region

Nancy K. Holtzman
Executive Director

Stanislas Berteloot
Director/ACTE EMEA Region



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