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ACTA in Damage Control
as It Attempts to Rewrite History
of Its Approval of Agency Ownership Changes
Airlines Approve Agency Ownership Rule Changes at Geneva Meeting
Toronto, 26 October 2009: While imitation may be the best form of flattery, ARTA Canada expressed disbelief that ACTA would be so audacious as to issue press statements decrying attempts by IATA to impose unfair burdens on agency ownership changes in Canada when the objections to the changes came from ARTA Canada, not ACTA. It was ACTA itself which approved the changes. A report of the IATA meeting between ACTA and the airlines where the changes were discussed in May 2009 indicates that the parties unanimously approved the changes, making no mention of ACTA's objections nor "provisional approval" as ACTA now claims.
At issue is a letter of credit or bank guarantee increase from $25,000 to $35,000 to be held for a longer period of two years instead of the prior hold of 6 months. The language of the changes is also flawed with awkward and unclear terms regarding minimum and maximum amounts, hold periods, and the process of subsequent evaluations leading to the return of the guarantees.
The proposed changes were finally approved by airlines at the meeting of the Passenger Agency Conference (PAConf) in Geneva last week on 22-23 October 2009, making it significantly more difficult for smaller agencies to consolidate and acquire each other given the additional and longer term financial surety proposed. In an era where amalgamation and acquisitions are a viable solution to today's tough market conditions, the new changes are an obstacle for these types of business arrangements.
Notwithstanding the fact that ACTA's press comments misstate when ACTA's meeting with the airlines was actually held, ACTA goes on to state that it also approved various other resolutions when, in fact, the resolutions which ACTA cites have no bearing on Canada, and as such, don't even appear in the report of the meeting.
ACTA's rambling statement attempts to obscure its actual approval of the ownership changes by making reference to a wide range of activities which have nothing to do with the real issue that ACTA was simply asleep at the switch when it approved the changes.
On 19 October 2009, ARTA Canada submitted its concerns to PAConf through its representative to the airline meeting, the United Federation of Travel Agents’ Associations (UFTAA). Not only did ARTA Canada's submission ask the airlines for a complete clarification and revisions to the wording of the proposed changes, but also for an exemption for any acquiring travel agency which had a clean financial record with IATA for at least 5 years.
Two days later, and for the first time to anyone's knowledge, ACTA voiced the same concerns as ARTA Canada. There is no record of any submission by ACTA to PAConf in objection of ACTA's prior approval to these changes.
The approved new provisions for Canada become effective 01 November 2009.
About ARTA Canada
ARTA Canada is the largest non-profit federally incorporated professional association of travel retailers in Canada, the members of which consist exclusively of travel agencies and travel agents. In addition to advocating fair and equitable treatment of travel consumers, ARTA Canada represents the commercial and strategic interests of its member travel agencies and travel agents in a variety of national and provincial domains including regulatory and legislative matters, automation, technology, sales and marketing, and distribution.
ARTA Canada is the strategic partner in Canada of the U.S.-based Association of Retail Travel Agents (ARTA). ARTA Canada is the Canadian member of UFTAA, the United Federation of Travel Agents' Associations. To join ARTA Canada, complete details and online membership application and secure payment are available on the ARTA Canada web site at www.artacanada.ca/join. | 
