GBTA Asks DOT Not To Approve IATA Resolution 787

Not Enough Clarity to Assess Buyer Benefit or Harm

ALEXANDRIA, Va., April 4, 2013 /PRNewswire-USNewswire/ -- The Global Business Travel Association (GBTA)—the voice of the global business travel industry—today filed comments with the Department of Transportation in Application for Approval of an Agreement (Resolution 787) by the International Air Transport Association's (IATA) filing seeking approval of their New Distribution Capability (NDC) proposal.

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The following statement is attributable to Michael W. McCormick, GBTA executive director and COO.

"GBTA believes an ill-advised shift in distribution dynamics will have negative consequences across the industry. Any changes made to the current, well established airfare distribution system may have huge cost implications and potentially harm downstream buyers.  

GBTA is very concerned that planned airline "profiling" could disadvantage the business traveler and result in differentiated pricing for travelers that will drive those travelers to unknowingly violate a company's travel policy and raise airfare costs for companies without their knowledge or consent.

There are too many questions without answers.  Will NDC create any real benefit for the corporation who is paying for travel? Or is this just another attempt to reduce airline distribution costs at the expense of the buyer in the form of reduced price transparency and more complexity in the distribution process itself?

GBTA asks the Department of Transportation to not approve IATA's Resolution 787 because not enough clarity is available at this time and the consequences of a wrong decision cannot be overstated."

About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world's premier business travel and meetings organization. Collectively, GBTA's 5,000-plus members manage over $340 billion of global business travel and meetings expenditures annually. GBTA provides its network of 21,000 business and government travel and meetings managers, as well as travel service providers, with networking events, news, education & professional development, research, and advocacy. For more information, visit gbta.org.

SOURCE Global Business Travel Association

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