Helsinki, Finland (27 April) -- More than a hundred CEO’s, CFO’s, and corporate executives from Finland participated in a forum (conducted April 22) to explore the impact of outdated International Air Transport Association (IATA) regulations on the Eurpean economy. They were shocked to learn that this amount is estimated to be as high as 1 billion euros annually. The shock continued when keynote presenter Cheryl Hutchinson, Chairwoman of the Association of Corporate Travel Executives, informed them that this cash hemorrhage brought no value to their business travel process.

“IATA was chartered in a time when each country had a national carrier, when borders were tightly controlled, and when protectionist measures were common,” said Hutchinson. “We’re at a different point in history now. The European Union was formed as a borderless economic power to stimulate trade. Outdated IATA regulations -- many of which were written nearly 50 years ago -- do not support that concept.”

IATA regulations also have an impact on companies in the U.S. Anyone traveling for a global company, or any multinational company, incurs unnecessary processing costs and additional ticketing expenses when booking outside the country. (ACTE is currently devising a model that will allow travel managers to plug in their data and determine this amount.)

“Nearly all of the big names in our industry have developed elaborate ticketing and service delivery processes to work around the IATA boondoggle. This softens the blow to the U.S. corporate consumer,” said Hutchinson. “But it doesn’t go away. The demise of the commission system in Europe is peeling back the layers of the onion, and the true level of expense is emerging.”

Hutchinson added that the technology exists that would enable companies to issue tickets in Europe from the U.S. “But the current regulations require us to have hardware, software, licenses, and layers of staffing in Europe, she said.

The European Commission’s review process is somewhat complicated, hence slow. “It could take several years,” said Hutchinson. “In the meantime, European businesses are losing a billion euros a year. And IATA doesn’t see the need for speed.” A previous ACTE proposal has yet to make it to their agenda.

ACTE has decided to take it’s case to the people -- the people who are paying. “We’ve begun an international business awareness campaign, which is gaining momentum, and the interest of champions in a number of countries,” said Hutchinson. Champions are companies willing to take a stand on this issue.

The program kicked off in Finland, with the assistance of Ann Cleveland-Oey, Global Travel Manager for Wartsila. Aghast at what her company was losing through outdated IATA regulations, she brought the concept of circumventing travel circles and appealing straight to the top.

“Upper management may not understand the complexity of the travel process, but they are acutely aware of the effects of wasting money,” said Cleveland-Oey. “It’s our intention to inform businesses of the situation, give them a voice, and amplify that voice to government.”

ACTE is presently preparing presentations for other cities in the region. For detailed information on the assiciation's IATA Task Force, it's members and the steps taken thus far, click here .

For more information, contact:
Jack Riepe
ACTE Communications Director
t: 610-719-8396
c: 610-256-0124
e: [email protected]

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