The Brazil market won't be subject to Lufthansa Group’s controversial 16 euro charge on GDS bookings when the fee goes into effect on Sept. 1.

The Lufthansa Group still intends to implement the fee in Brazil, but the delay will be in effect until further notice, company spokeswoman Claudia Lange wrote in an email to Travel Weekly on Tuesday.

The booking fee, which amounts to slightly under $18 at the current euro-to-dollar exchange rate, has fanned protests from travel agencies in the U.S. and Europe due to concerns that it will reduce their efficiency and worries that other airlines could follow suit.

Customers who directly book with Lufthansa Group (Lufthansa, Austrian Airlines, Brussels Airlines and Swiss International Air Lines) won't be subject to the fee.

A technical complication is the reason that Lufthansa isn’t implementing the distribution cost charge in Brazil on Sept. 1. The problem, Lange explained, is that Lufthansa planned to collect the surcharge by designating it as an “OB” ticketing fee in the GDS systems. However, not all GDS systems are capable of implementing the charge under the OB code, she said.

As a result, Lufthansa decided to collect the distribution cost charge by labeling it as “YR” fee code, which airlines can use for fuel surcharges, terminal fees and even “miscellaneous” charges according to an ATPCO primer. In Brazil, however, it's not clear whether the distribution charge can legally be billed under the YR code, Lange said.

Lufthansa plans to collect the distribution charge using the OB code once it has been “fully implemented by all GDSs,” she said.

Comments

From Our Partners


From Our Partners

20 Reasons to Sell AmaWaterways
20 Reasons to Sell AmaWaterways
Register Now
Extraordinary Expeditions with Seabourn
Extraordinary Expeditions with Seabourn
Register Now
Viking Ocean Cruises
Viking Ocean Cruises
Read More

JDS Travel News JDS Viewpoints JDS Africa/MI