WASHINGTON -- ARTA representatives descended on the capital May 10
to drum up support in Congress for an investigation into the "T2"
Web site that major airlines plan to use to market tickets on line.
ARTA president John Hawks, in a telephone press conference, said
his association intends to file a petition on May 15 requesting a
Federal Trade Commission investigation that would specifically
examine the Boston Consulting Group, the company that is designing
the site.
"We are filing on the basis that the Boston Consulting Group is
organizing an entity that will allow the airline owners to collude
illegally against travel agents," Hawks said.
In its petition, Hawks said, ARTA contends the Web site, jointly
owned by American, Continental, Delta, Northwest and United
airlines, conceptually employs the tactic of "tying," a method of
requiring corporate customers to use a certain CRS in order to gain
discounted rates on air tickets. The Transportation Department
established regulations prohibiting the use of tying.
However, Hawks said, those regulations predate the Internet and
do not specifically encompass transactions that take place on
line.
Consequently, Hawks said, "the [airlines] will have free rein to
price-signal and set Internet-only discounts and benefits that you
will have to go to the Web site to get. We feel that violates
federal rules about antitrust and, particularly, unfair
competition."
Hawks said he was attempting to enlist the support of several
lawmakers for an FTC investigation.
At least one, Rep. Peter DeFazio (D-Ore.), a member of the House
aviation subcommittee, has agreed to send a letter to the FTC in
support of the ARTA petition.
DeFazio's representative said he would send the letter to the
FTC within a few days. DeFazio, an outspoken critic of the
airlines, already has sent a letter to the Justice Department
expressing concern that the proposed Internet venture "could open
up the possibility of collusion between the airlines."
ASTA also has called on the DOT and the Justice Department to
investigate the proposed site.
Meanwhile, aviation committees in the House and Senate have
tentatively scheduled hearings to explore plans for the Internet
site.