Travel agents deem direct sales by airlines unfair

The Federated Association of Travel and Tourism Agents (FATTA) yesterday filed a writ in the First Hall of the Civil Court claiming damage from Deutsche Lufthansa AS (Malta), Deutsche Lufthansa AG (Germany) and the International Air Transport Association (IATA).

FATTA told the court there was an agreement, known as a Passenger Sales Agency Agreement (PSAA), that regulated commercial relations between travel agencies accredited with IATA and the foreign airlines.

According to FATTA, the foreign airlines were in violation of the PSAA by making direct sales of airline tickets over their internet websites.

Through such means, the airlines were selling tickets at a rate that did not include the commission due to the travel agents, which was regulated by the PSAA. This net fare scheme was discriminatory in relation to the travel agent who could not sell airline tickets at the same price as the airlines unless s/he forewent the commission.

According to FATTA, the scheme was also in violation of the principles of fair trading.

It claimed that the travel agents were suffering financial hardship and that IATA was remaining passive when faced with this situation.

In conclusion, FATTA asked the court to declare that the airlines were in violation of the PSAA and to condemn the airlines and/or IATA to make good the damages the travel agents had sustained.

Lawyer Michael Tanti Dougall signed the writ.