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Op-Ed: An Open Letter To All Travel Agents

By Leo Girard
Publication: Business Travel News
Date: Monday, October 27 2003
As you all undoubtably are aware, Air Canada has found it necessary to seek the protection of the courts as it endeavors to reorganize its affairs. While all travel agents are indirectly impacted by that set of circumstances, there is a more recent development that has the potential to have a much more

direct and much more significant impact upon each agent and their businesses.

I am speaking here of the motion brought by Sabre within the Air Canada insolvency proceedings. Essentially, Sabre claims that Air Canada, which was granted protection from creditors, is using its insolvency proceedings to "act with impunity and take unfair advantage" of Sabre. Specifically, Sabre alleges Air Canada has changed "the manner and extent to which it makes flights and fares available to travel agents and consumers worldwide, restricting access via Sabre's computer reservation system to an entire array of fares and flights."

Sabre complains that Air Canada is offering the 9 percent "cash reward" to those agents who book flights directly through Air Canada's Web site. Sabre is telling our courts that this is unfair (to it) because it only offers them a 5 percent incentive to use its services.

Even if the discussion ended there it would be obvious that, according to Sabre, the travel agents who rely upon those systems to secure the best products at the best prices for our customers should be blocked from accessing any superior products/prices from the air carriers, while still being compelled to pay fees to Sabre for the "privilege" of using its antiquated (now that the Internet has arrived) service.

What troubles me, however, is that the unfairness does not end there because Sabre (as owner of the Internet-based Travelocity.com travel agency) operates in direct competition with agents while, at the same time, using the contracts that it has with the air carriers to prevent agents from accessing the best products/prices that the air carriers are offering to the public. Speaking for myself, I find it incredibly duplicitous for Sabre to conduct its dealings in that manner while complaining that Air Canada is "acting with impunity and taking improper advantage" of Sabre.

While it is true that Sabre's motion has been brought in the context of the insolvency proceedings under which Air Canada is currently operating, it seems clear to me that this motion has the potential to create a precedent which Sabre could use to shut all agencies out of any access to any Internet-based bookings with any airline in the world, thereby enforcing and, in a sense, legitimizing a set of trade practices which, in my mind, are unfair and unreasonably restrictive.

Why should you care? While it is clear that Air Canada and Sabre are the litigants, it is also clear that they are fighting

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