Studies of the EU: costs for flight tickets are too high?

The European Commission has initiated proceedings against two leading provider of reservation systems for flights. It is possible there was collusion, which could have led to inflated prices for airline tickets.

The EU cartel office is investigating whether the airline ticket reservation provider, Amadeus and Sabre are in breach of European competition rules. Specifically, it should be checked whether the contracts of Amadeus and Sabre with Airlines and travel agencies to restrict competition for the sale of airline tickets, informed the EU Commission-the Supreme cartel office in Europe.

“We have concerns that such restrictions are barriers to Innovation creation and ticket distribution costs increase, which could eventually lead the passengers to a rise in ticket prices,” said competition Commissioner Margrethe Vestager.

arrangements are under the magnifying glass

now wants to check whether certain clauses in the agreements between the booking system providers, as well as airlines and travel agencies restrict these to take the services of other ticket providers.