Washington Wire - 1998-02-23
<B> Washington Wire</B>
By Barbara Cook, Washington Correspondent
<B>ARC To Pilot Corp. Settlement </B>
The Airlines Reporting Corp. in the next few months might test a direct reporting arrangement with a dozen corporate travel departments. Although corporations already can obtain agency accreditation under current rules, they are required to sell some of their services to the public. The new agreement would not contain that mandate.
A working group of ARC's joint advisory board has reached a consensus--but not unanimous agreement--to recommend such a test, according to ARC spokesperson Allan Muten. The working group, which includes American Express, The Association of Retail Travel Agents, the American Society of Travel Agents, BTI Americas and Corp-Net, will present its findings to the full advisory board on March 5. Although the ARC board of directors isn't set to meet until June, board members may discuss the board's recommendations by telephone and authorize such a test in the meantime.
<a name="story2"><B>Net Dominates CRS Comment Period...</B>
Parties filing reply comments in the Transportation Department's CRS rulemaking, while generally satisfied with the current rules, have been focusing the discussion on direct booking over the Internet. Microsoft has been calling for limits on federal regulations while others in the travel industry have been urging the government to ensure that bias discrimination--the same kind which is not allowed to appear on CRS screens--is barred from Internet displays.
<a name="story3"><B>...As DOJ Approves Online Association</B>
The Justice Department has issued a business review letter approving a plan by 10 electronic travel service providers to create the Interactive Travel Services Association, an organization to promote online travel.
Proposing the new association were America Online, American Express, Biztravel.com, Excite, Internet Travel Network, Microsoft, Pegasus Systems, Preview Travel, Sun Microsystems and TheTrip.com.
DOJ, however, cautioned that the association must not allow "itself or its members to exchange price, customer or other competitively sensitive information." Heightened risk to competition would warrant further review by the department, said Joel Klein, assistant attorney general for the Antitrust Division.
According to the members' proposal, the new association would identify and discuss common industry problems, promote consumer protection, educate consumers and travel suppliers on the features and benefits of online travel services, present industry views to governmental bodies, serve as an information clearinghouse and conduct market research.
<a name="story4"><B>New Aviation Group Issues Safety Agenda</B>
The Commercial Aviation Safety Strategy Team, a new coalition of major airlines, the Air Lines Pilots Association and aircraft manufacturers, has issued a safety agenda that calls for the federal government to set priorities for finding solutions to the most common causes of commercial aviation accidents.
The biggest threat to airline passengers is controlled flight into terrain, which accounts for one-third of air accidents worldwide. The industry and the government would be better served by focusing resources on eliminating accidents of this type than by spending resources on lesser problems, such as improving air cabin quality, the group said.
The Federal Aviation Administration and the National Aeronautics and Space Administration have endorsed the industry effort.