Washington Wire - 1996-10-07

<H1> Washington Wire</H1><H3>CRSs: No More Parity?</H3>The <B>Department of Transportation</B>'s proposed rule that would allow airlines to participate at different levels in different computer reservations systems has won support from the <B>Department of Justice</B>.

DOJ said the so-called parity clauses affecting the CRS industry are anti-competitive and could actually force airlines to make inappropriate choices when purchasing CRS services. The parity rule is used by<B> Sabre, System One Amadeus</B> and <B>Worldspan</B>.

The<B> American Society of Travel Agents</B> also filed comments with DOT on the proposal, claiming it fails to address an equally significant problem in the CRS industry. ASTA said one of the most important automation issues facing agencies today is their inability to change systems when they are locked into "five-year terms based on whatever service is currently available." ASTA asked DOT to either fix both aspects of the problem or postpone addressing either of them until it conducts an overall review of its CRS rules.

The DOT proposal is a result of a 1994 <B>Alaska Airlines</B> protest over the parity clauses, including complaints about rising distribution costs and inefficiencies.

<H3>Smooth Safety Transition</H3>Vice President Al Gore has assured members of the airline industry that, despite the administration's determination to quickly implement stepped-up security at the nation's airports, officials want to avoid creating a hardship for the airlines and undue inconvenience for passengers.

In a letter to <B>Air Transport Association</B> president Carol Hallett, Gore said, "while we must proceed quickly, I believe we should do so in phases" to put in place a positive baggage-match system for domestic flights. The system mandates that no unaccompanied baggage be permitted on flights within the United States; this is already in effect on international routes. Testing of the baggage match, which began last month, is expected to end in November.

<H3>Cyberspace Update</H3>The <B>White House</B>'s homepage on the Internet now connects travel surfers with a number of frequently requested federal services. For example, travelers can obtain electronic forms to apply for or amend their passports, read the <B>State Department</B>'s list of travel advisories and check on-time statistics for airlines listed by the <B>Department of Transportation</B>. The White House site is located at www.whitehouse.gov.

<H3>Raytheon Gets ATC Contract</H3>The <B>Federal Aviation Administration</B> recently inked a contract with <B>Raytheon Corp</B>. to develop hardware and software to replace the aging equipment at regional air traffic control towers across the country. The new computers will involve 172 FAA towers and 199 <B>Department of Defense</B> facilities. FAA officials said the first system to be designed by Raytheon will be operational in Boston by December 1998; subsequent deliveries are scheduled through the year 2007. The contract is said to be valued at nearly $1 billion. Raytheon also is building ATC systems for airports in Germany and Hong Kong.

<H3>No Visas For Australia</H3>As of July 29, American travelers no longer need a visa to enter Australia. The country was added to the list of countries in the U.S. visa waiver pilot program, which eliminates visa requirements for U.S. citizens and allows citizens of participating countries to travel to the United States for 90 days or less without obtaining a U.S. visa.