The Association of Corporate Travel Executives is courting the European Union as an ally in its fight against International Air Transport Association regulations in Europe, hoping to upend what it called "outdated" and costly rules.
ACTE, in conjunction with other travel interest groups, has been in discussions with IATA to little avail and now is "taking the fight to a higher level," ACTE leaders said in a memo soliciting signatures for a petition it plans to send to European Commission president Romano Prodi.
"As representatives of one of the largest segments of commerce in the EMEA region--the business travel sector--we are compelled to advise you that IATA is costing European companies a conservative billion euros annually through outdated regulations and procedures," the petition stated.
ACTE said it wants to modify further tariff structures and standardize faring, "regardless of booking or ticketing location," and remove restrictions on cross-border booking and ticketing.
Petitioners also request that IATA set up a pan-European bank settlement plan, similar to ARC in the United States, as well as standardize travel agent accreditation requirements and application processes in Europe.
The E.C. last year pressured IATA when it announced the end of IATA's immunity from prosecution for acting as a cartel. As a result, IATA began dismantling some barriers against standardized European travel management
(BTN, Dec. 8, 2003). Although ACTE conceded that "progress is being made," it expressed hope that the E.C. would accelerate IATA regulatory changes.
Modifying IATA rules has become a pet issue for ACTE, which during the past year has enacted several initiatives to overturn regulations. ACTE last year partnered with Paragon partners, including the National Business Travel Association, to push the issue and also created a task force to rally against IATA rules. ACTE in March met with representatives from the E.C. in Washington, D.C., to discuss IATA regulatory changes and gain support.