release

Air Canada’s Best Customers Oppose Distribution Policy

RADNOR PA., May 11, 2006–The Business Travel Coalition (BTC) yesterday transmitted a Signatory Letter to Air Canada (AC) CEO Montie Brewer regarding his airline’s policy to remove low-fare Tango inventory from the four GDSs. The letter was signed by forty-six corporations and universities who are important AC customers. These Signatories are very concerned that AC’s action will 1) lead to increased prices-paid for air travel, 2) generate new administrative and process costs due to content fragmentation and additional complexity and 3) encourage other airlines to implement similar disruptive policies. (See Signatory Letter at Air Canada Watch: http://btcweb.biz/ac.htm.)

BTC chairman Kevin Mitchell stated, “This issue has touched an extremely sensitive nerve in the business travel community and all throughout the travel industry. Air Canada’s message to its best customers that they no longer merit access to Tango fares through GDSs has caused a huge and sustained outcry. Contrary to Air Canada’s spin, there are no technological limitations involved in loading these fares into GDSs; the only technological problems have come from Air Canada deliberately throwing sand in the gears of managed travel programs through this unfortunate and unwise move.”

The Coalition believes that the growing opposition to AC’s policy is becoming so strong and diverse that the airline will realize the harm its policy is causing and reverse course. In addition to individual corporate travel managers and travel agency executives writing directly to AC, the Association of Canadian Travel Agencies, the Canadian Corporate Travel Association, the American Society of Travel Agents, and the Business Travel Coalition have all been active in advocating AC’s reversal of its new distribution policy. What’s more, Canadian travel buyers and distributors during an Association of Corporate Travel Executives’ (ACTE) conference in Atlanta this week expressed strong concerns about AC’s policy. (ACTE is a prominent global business travel professionals Association.)

According to a May 8th ACTE Press Release, “Attendees overwhelmingly stated that the impact of Air Canada's recent action to remove some of the inventory from the GDSs would complicate or hinder their travel program.” During an automated polling of the Canadian ACTE members, 83% of the buyers indicated that the AC policy would hinder their managed travel program; likewise, 83% of buyers agreed that lack of consolidated data would be a consequence. Very importantly, 67% of buyers indicated having travelers booking out of their corporate systems would represent a security risk with respect to their whereabouts during a crisis. Vast majorities also agreed travel costs would increase due to higher prices-paid and increased process complexity. 

BTC calls on AC to put its very best customers’ interests first and reverse its misguided distribution strategy.