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SPECIAL EDITION

May 8th, 2006
Travel lobby mobilizes against Air Canada
ACTA demands response from airline’s president Mounty Brewer

 

Christiane Théberge
ACTA recently teamed up with American Society of Travel Agents (ASTA) and the Business Travel Coalition (BTC) to protest the airline’s withdrawal of Tango fares.
The following is a copy of a statement released by ACTA on May 8, 2006.

Travel Industry calls on Air Canada to roll back its surprise anti-consumer Trango fare action

The Association of Canadian Travel Agencies (ACTA), the Canadian Corporate Travel Association (CCTA), the American Society of Travel Agents (ASTA), and the Business Travel Coalition (BTC), today jointly called on Air Canada to immediately roll back actions it took - without any advance notice - on last Tuesday to pull out of the travel agency channel its lowest and most popular fares for Canadian travelers.

Before the start of the business day Tuesday, Air Canada completely stopped selling its Tango fares via Canadian travel agencies and the GDSs that travel agencies use as convenient tools for finding flights and fares. These fares represent roughly 20% of all tickets used by Canadians and are often the lowest fares available for a consumer’s trip.

Christiane Théberge, Vice President Public Affairs of ACTA, said that, “Travel agencies, which sell roughly 75% of Air Canada’s tickets, received no warning whatsoever of this drastic action. Instead, thousands of travel agents arrived at work on Tuesday morning to learn that overnight Air Canada had blocked them from helping a large sector of the traveling public. This unfortunate and radical move by Air Canada, in a market where it is the dominant carrier, demonstrates a stunning disregard for the interests of travel agencies and the consumers they serve,” she said.

Lyell Farquharson, spokesperson for CCTA added the following statement, “We in the industry and our clients continue to be amazed at Air Canada's ability to further complicate an industry that is difficult to understand at the best of times. Prices and availability change instantly, fare rules, taxes, surcharges change daily and again Air Canada is changing their distribution strategy without warning or better consultation. This leaves the traveler frustrated and confused. The Travel Management Companies have invested millions to bring all these variables together to develop travel programs for Corporate Canada. Air Canada continues to not understand that our clients want a simpler value equation, low fares and simpler processes not more complicated. Air Canada's attempts to keep the low fare options away from Corporate Canada only results in more problems for Air Canada. The World has changed and Air Canada says so have they, what they do not seem to be able to grasp is how to change and keep their customers needs a top priority”.
Kathy Sudeikis, President of ASTA, said, “We are disappointed that Air Canada has chosen to limit consumer choices by withdrawing lowest fare inventory in some markets and to impose inefficiencies on both travel agencies and consumers by making it difficult to find, book and manage the airline’s lowest fare options. We are especially troubled by the lack of communication with travel agents and customers.”

Kevin Mitchell, Chairman of the Business Travel Coalition added, “Air Canada’s public rationale for taking this action –that ‘GDS limitations’ forced it to stop selling on Tuesday fares the GDSs had sold for years -- is a smokescreen. These fares were fully available in the GDSs on May 1, and they could have remained in the GDSs had Air Canada not taken this unilateral step on May 2. Air Canada’s obvious desire is to turn their backs on the very travel agencies who sell so large a share of their seats and on corporations who depend every day on these agencies’ services.”

ACTA, CCTA, ASTA and BTC called on Air Canada to immediately reverse this misguided, anti-consumer move and to once again put these important fares back into the systems that travel agencies use to serve their customers in an efficient and cost-effective way.

CCTA was formulated in 1998 and the membership consists of the 11 largest travel management companies in Canada producing over $3.8 billion in corporate airline sales on an annual basis. The CCTA’s mandate is to promote the collective interests of their customers on issues of importance in the industry.
About ASTA

The mission of the American Society of Travel Agents and its affiliated organizations is to enhance the professionalism and profitability of members worldwide through effective representation in industry and government affairs, education and training, and by identifying and meeting the needs of the traveling public. The Society is the world’s largest and most influential travel trade association with over 20,000 members in 140 countries.

Founded in 1994, the mission of the Business Travel Coalition is to lower the long-term cost structure of business travel. BTC seeks to bring transparency to industry and government policies and practices so that customers can influence issues of strategic importance to them.

ACTA Asks: How many calls should it take before Air Canada will call you back?
For over a week now, officials from the Association of Canadian Travel Agencies have been trying unsuccessfully to get a hold of Air Canada president Mountie Brewer. ACTA, of course, wants to chat with Mountie Brewer about his airline’s withdrawal of Tango fares from the GDS system. Still, they haven’t heard back. Therefore, ACTA asks you the question: How many calls should it take for Air Canada to respond? Please share your thoughts in our Forum section.