Travel agents object to online air ticket sales

The Federated Association of Travel and Tourism Agents (FATTA) filed a judicial protest against Deutsche Lufthansa AG claiming the airline breached an agreement by selling flights through its website at cheaper prices than those offered by agents as they do not include the commission fee.

In the protest filed in the First Hall of the Civil Court, FATTA complained that Deutsche Lufthansa, the German national airline, had entered into a passenger sales agency agreement which laid down that travel agents were to be paid for their services to the airline.

But the airline was now breaching its commercial obligation as it was selling flights directly from its website at the same prices they are given to the agents, which means the online fare did not include the extra cost that would be owed to an agent as commission.

This net fare scheme adopted by the airline was in breach of the agreement and discriminatory to the agents who could not sell the flights at the prices offered online unless they are ready to give up their commission - which is regulated by the agreement.

FATTA called on the airline to revise this net fare scheme and held the airline liable in damages suffered.

Lawyer Michael Tanti Dougall signed the protest.