February 2, 2011
Via Electronic Filing
Samuel Podberesky, Esq.
Assistant General Counsel for
Aviation Enforcement and Proceedings
U.S. Department of Transportation
1200 New Jersey Avenue, S.E.
Washington, D.C. 20590
Re:
Docket OST 2010-0140, Enhancing Passenger Protections, Part II
Comments of Open Allies for Airfare Transparency
Dear Mr. Podberesky:
I am writing to you in my capacity as Executive Director of a recently-formed coalition
of online and brick and mortar travel agencies, corporate travel departments and global
distribution systems and other travel intermediaries known as Open Allies for Airfare
Transparency (“Open Allies”).1 Since Open Allies was launched only within the last few
weeks, it has not previously had an opportunity to comment on the rules proposed in this
proceeding. While we recognize that the due date for such comments has passed, we trust that
you will take our views into account to the extent possible.
Open Allies was formed for the purpose of endorsing and promoting the following core
proposition: All airlines should make their complete fare and ancillary fee information available
through every distribution channel in which they choose to participate. Open Allies contends
that this proposition should be indisputable because hidden airline fees, including fees that are
difficult for consumers to locate until after they have committed to a particular airline, are anticonsumer and serve to reduce rather than enhance competition. When fees are not fully
disclosed in all distribution channels at the time that consumers are making flight choices, then
comparative shopping and the competition it promotes are stifled. The record in this proceeding,
including a petition filed with the Department by over 50,000 consumers, contains ample
evidence that consumer deception is in fact now part of the air travel landscape. Major airlines
have chosen not to share their fee information with the indirect distribution channel despite
industry systems, such as those offered by ATPCO, designed to facilitate communication of fee
information to travel agencies. In this setting, an appropriately tailored consumer protection
measure is warranted.
Accordingly, Open Allies fully supports the rule proposed by the Department at proposed
section 399.85, which would enhance disclosure of checked baggage fees and fees for other
ancillary services on airline websites and (for checked baggage fees) in e-ticket confirmations.
At least as importantly, however, Open Allies also supports a rule that would require that airlines
1
A list of Open Allies’ more than 200 members is attached.
www.faretransparency.org
share the same fee information that they would be required to disclose on their websites with
their agents, and with the GDSs in which the airlines participate.
As the GAO has noted, over one half of the tickets sold to passengers are sold through the
indirect, agency channel of distribution, as opposed to being sold by the airlines directly. Thus,
the rule proposed by DOT would address less than half of the disclosure problem, warranting
that DOT go one step further to adopt a rule requiring that airlines share relevant information
with the indirect channel entities through which they choose to market their services. The
proposition is straightforward – if an airline opts to transact business through agencies and
GDSs, then it needs to arm them with fee and fare information so that passengers can be fully
informed regardless of which channel the passenger chooses to use. Agencies and GDSs are,
after all, ticket agents subject to the same statute prohibiting unfair or deceptive competitive
practices in the sale of air transportation (49 U.S.C. 41712) as applies to airlines directly.
While several airlines support the same position that Open Allies advocates here, as do
several industry and consumer groups, some airlines have opted to argue that the proposals
supported here would be costly to airlines and interfere in their choice of how to market their
services. There is a simple answer to these concerns: if an airline chooses to do business with
agencies and GDSs, then it has already made the decision to pay fees that reflect the cost of
indirect channel distribution. The DOT rules under consideration here will not materially
increase those costs; they will however protect consumers. This is not an economic proceeding
or one in which distribution options are at stake. The issue is only whether consumers are
entitled to full and timely information on the cost of travel.
The issue here in fact is no different from the code-share disclosure rule already in place
(14 CFR Part 257) and cited by DOT in its January 10, 2011 Guidance on Disclosure of CodeShare Service Under Recent Amendments to 49 U.S. C. 41712. There, DOT provided further
guidance to the aviation community, including not only airlines, but also agencies and GDSs,
about the need for adequate disclosure of code-share services. Under the rules at Section
257.5(a), airlines must provide information on their code-share arrangements to the GDSs in
which they participate. The fee disclosure rule that Open Allies supports would be no different.
It is no more “regulatory” than is any other consumer protection rule, and no less warranted.
Open Allies appreciates the Department’s dedication to the protection of consumer
interests and looks forward to future opportunities to address important issues such as that
discussed here.
Respectfully submitted,
Andrew Weinstein
Executive Director
www.faretransparency.org
Members of Open Allies for Airfare Transparency
As of February 1, 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
4WellnessTravel
A Plus Travel Corp.
A QUICK TRIP INC.
ABC Global Services
Adam Travel
Adelman Travel Group
Adler Travel Agency
ADTRAV Travel Management
Advantage Travel Centres
Advent Travel/Travel Leaders Minneapolis
AHY Travel & Tours
Airport Travel
Airport Travel Agency
Aladdin Travel and Meeting Planners
Alaska Travel Source
Alatur
All About Travel
All-Travel.com
Alpha & Omega Travel
Altria
Amadeus
American Council for International Studies
American Society of Travel Agents
Antelope Travel Greece
Anthony Travel Inc.
APB Travel
Applied Materials, Inc.
ArthroCare Corporation
ASAP Travel
Association for Wedding Professionals International
Association of Canadian Travel Agencies
Assurant, Inc
Atlas Travels
ATPI Group
Aviasales.ru
Azumano Travel - American Express
Balboa Travel Management
Balboa Travel, Inc.
Batt-travels and tours ltd
Bay Area Travel Inc.
BCD Travel
Bellver Viatges
Blue Ribbon Business Travel International, Inc.
www.faretransparency.org
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
Bowne of Dallas
Business Travel Coalition
Caldwell Travel
Candleridge Travel
Carroll Travel
Casto Travel
Century Travel Services
Child Travel/Albany Travel
Christopherson Business Travel
CI Travel
Colpitts World Travel
Columbia Basin Travel (Travel Leaders)
Colwick Travel
Commonwealth Business Travel Group, Inc.
Converteam UK LTD
Courtesy Travel
Cresta World Travel
Crowley Maritime Corporation
Cruceros To Go
Cruise Travel Vacations
Cruise Trips for Two
CSC
Dart Corporate Travel
DHL Global Business Services
Directravel
Divertiviajes
Dubai Travel & Tour Agents Group
Duluth Travel
El Sol Travel
Emely Tours, Dominican Republic
Emergency Travel Service, LLC
Entertainment Travel Service
ESF travel
European Technology and Travel Services Association
European Tours
Examinetics
Expedia
Explore Tours
Federal-Mogul
Fred Imbert Travel
Freeman
Gambro Lundia AB
Geraci Travel
GKR Consulting, LLC
Global Crew Logistics/CTCII
GlobalPoint Travel Solutions
www.faretransparency.org
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
Green Earth Travel LLC
Hamilton, Miller, Hudson & Fayne Travel Management Corporation
HealthCare California
Hess Corporate Travel
Interactive Travel Services Association
International Tours & Cruises
Interview Travel
iwantmytravel.com
J Walker Service Group LLC
Just Marketing International
KBACE Technologies
Kraft Foods
Let's Travel
Liberty Global Europe
Logitech
LXR Travel
Maritz Travel Company
Maupin Travel Inc.
Meghdutam Travels Canada Inc.
Menno Travel Service
Milne Travel
MKI Travel and Conference Management
Montrose Travel
National Business Travel Association AUS/NZ
NOVA Chemicals
Oasis Travel
OMT Travel Production
Oracle
Orange Blossom Travel
Orbitz Worldwide
OT&T Travel Management
Ovation Travel Group, Inc.
Papa John Johns / Taylor Productions
Passageways Travel - AMEX
Penn State University
Plaza Tours / Viajes Plaza
Polk Majestic Travel Group
Pryde Travel
Quiksilver
Randall's Travel Services
Roberta's Travel Solutions
S.R. Travel Service
Sabre
Sanditz Travel
Sauer-Danfoss
Scottish Passenger Agents Association
www.faretransparency.org
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
Shop and Bargain for You
Singh's Travel
Society of Government Travel Professionals
Sodexo
Softvoyage
Spears Travel / Travel Leaders
Sreenath Sager
Stellar Travel
STERIS Corporation
Sterling Vacations
Superior Choice Travel
Sybase, Inc.
Textron
The Travel Collection
The Travel Company Edinburgh
TLG Travel Management
TMC
Total Travel Adventures
Tour East Holidays (Canada) Inc.
Tradytec
Travel Agents Federation of India
Travel and Transport, Inc.
Travel Connections
Travel Dynamics Group Inc.
Travel Experts, Inc.
Travel Leaders (Framingham, MA)
Travel Leaders (Plano, TX)
Travel Leaders (Memphis, TN)
Travel Malta Destination Management Ltd.
Travel Management Corporation - Global Star
Travel Management Group
Travel Management Partners
Travel One
Travel Quest
Travel Solutions, Inc.
Travelbusiness
Traveling Times, Inc.
Travelink
Travelocity
Travelport
TravelStore Inc.
Traveltech/Frosch
Travizon
Trimble Navigation Limited Sunnyvale
Tubby Lohmer's Travel Leaders
Turismo GT
www.faretransparency.org
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.
196.
197.
198.
199.
200.
201.
202.
203.
204.
205.
206.
207.
208.
Two Scots Travel
Ultramar Travel Management
UNIGLOBE Travel International LP
Universal Travel / American Express
Up and Away Travel
USTravel
Vaisala Products & Technology
Valerie Wilson Travel, Inc.
Vanilla Sky
Viajes Caribe
Viajes Galiana Inc
Viatoris
Vimsa Tours
Virtuoso
Vista Travel Inc.
Warwick Travel Service
Wayland Travel/ATD-Adventure Travel Desk
White Reizen Jetaircenter
Wilcox World Travel and Tours
Williamsburg Travel
Wood Travel
World Travel
World Travel Bureau, Inc.
World Travel Service
World Travel, Inc.
Worldwide Cruises SRL
Your Travel Center Inc.
www.faretransparency.org