Mariscal Foch E4

- 261 y Av. Amazonas Edificio Turisa 2° piso * Phone: +5932252749

e

- mail: presidenteqasecut.com April, 2013

The Honorable Ray LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, Dc 20590

Re: Docket No. OST

- 2013

- 0048

– International Air Transport Association Resolution 787

Dear Secretary LaHood:

Regarding the NDC (New Distribution Capability) project to be launched by IATA, we express our absolute rejection based on the following considerations.

1.

- The air fare distribution model currently in place is a system that is independent of airlines and distribution channels, namely travel agencies and tour operators. It is operated by companies referred to as GDS’s that rigorously comply with information transparency and guarantee, among others, ample and free global access to content/fares of those ai rlines who wish to participate in these GDS systems.

2.

- With the NDC model proposed by IATA, the distribution system of air fares will be controlled by one of the market actors: major airlines (most of them for

- profit privately held companies) associated to IATA, meaning that the transparency principle protected by the current model would be conditioned by the interest of one of the afore

- mentioned party.

3.

- It is a fact that passenger air transport markets have become more concentrated as a result of p rivatizations, mergers, acquisitions and commercial agreements between airlines geared to reduce competition (e.galliances and code

- shares). This new air fare distribution system will foster even less competition between air carriers and thus negatively impact consumers.Mariscal Foch E4

- 261 y Av. Amazonas Edificio Turisa 2° piso * Phone: +5932252749

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- mail: presidenteqasecut.com 4.

- The air fare distribution system that IATA plans to implement

– solely oriented to its member’s interests

– will negatively impact the independent channel of distribution by demanding significant financial investment cost and bysetting conditions for system access with no guaranteed access to full content or inventory that would allow the independent channel (travel agencies and tour operators) to compete in fair conditions; even worse, this scenario would allow large and maj or airlines to increase their participation in the distribution area

.

5.

- Not having an indirect and independent sales channel like travel agencies and tour operator would highly reduce contestability in the air transport market.

The latter would set entr y barriers for new actors willing to complete for the business.

6.

- NDC will provide IATA with confidential customer profile information currently stored by travel agencies and tour operators thus creating a vulnerable situation both for the independent distribution channel and for the consumer, especially in those markets with presence of dominant airlines.

7.

- The aforementioned scenarios directly collide with actions currently enforced by organizations that protect fair open competition on behalf of the consumer.

Considering all preceding concepts, our conviction is that implementing NDC will ensue discrimination against the indirect and independent sales and distribution channel and thus foster conditions for the development of a less competitive ai r transport marketplace. Furthermore, major airlines competing in a particular market might collude (collaborate) in the distribution of its product offer and air fares

- reducing competition among each other

- and hinder competitiveness in the market.

8.

- We thank DOT and the U.S Government the invitation to express our opinion about the IATA NDC project.Mariscal Foch E4

- 261 y Av. Amazonas Edificio Turisa 2° piso * Phone: +5932252749

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- mail: presidenteqasecut.com 9

. - Our entity is pleased to witness the concern of most governments that currently protect their consumer citizens against anti

- trust practices. For this same reason, this document will also be forwarded by us to pertinent anti

- trust government organizations advocating in our countr y

.

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. - Regarding the NDC (New Distribution Capability) project to be launched by IATA, we manifest our absolut re jection of the indicated aspects in the present document.

Asecut Asociación Ecuatoriana de Agencias de Viajes

José Luis Egas Presidente