COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 404 final 
Brussels, 23 September 1992 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 2299/89 on a code of conduct for 
computerized reservation systems 
(presented by the Commission) 
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REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) 
NO 2299/89 ON A CODE OF CONDUCT FOR COMPUTERIZED 
RESERVATION SYSTEMS (CRSs) AND PROPOSALS FOR 
AMENDMENTS TO THE CODE 
Contents: 
I. Introduct ion 
II. Application of the code of conduct 
1. Waivers granted to CRSs 
2. The Explanatory Note 
3. Complaints and requests for interpretation 
III. Worldwide aspects of CRS regulation 
IV. Needs for an amendment of the code of conduct 
1. Clarifications/modifications of existing rules 
2. Inclusion of non-scheduled services 
3. Mandatory participation in CRSs 
4. Dehosting or specific safeguards 
V. Comments on Individual Articles 
Annex Proposal for amendments 
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Report on the Application of Council Regulation (EEC) 
No 2299/89 on a Code of Conduct for Computerized 
Reservation Systems (CRSs) 
I. Introduction 
Reservation systems have for a long time been used in aviation as a 
normal element in air carriers' day-to-day operations. It was in 
the United States, however, that carriers first developed modern, 
sophisticated CRSs to cope with the needs and quickly changing 
conditions of a free market and to hold or enlarge their 
competitive market positions. 
Because of their extensive capabilities these CRSs became very 
powerful marketing tools for their owner carriers allowing them to 
achieve advantages to the detriment of their competitors. 
Discrimination occurred in the way flights were ranked in 
displays, but also, inter alia. with respect to access to marketing 
information generated by the CRS or by preventing subscribers from 
switching to or using a competing CRS. 
Air carriers which did not have their own CRS came to depend to a 
wide extent on the CRSs of their competitors for the distribution 
and selling of their own products which encouraged tendencies to 
distortion of competition and abuse of dominant positions. 
The need for a regulatory framework in the field of CRSs became 
obvious in order to avoid such abuse and to ensure fair competition 
between air carriers and CRSs to the benefit of both the industry 
and the consumer. 
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The Council adopted Regulation No 2299/89 on a code of conduct for 
computerized reservation systems on 24 July 1989. The Regulation 
was published in the Official Journal No L 220 on 29 July 1989 and 
came into force on 1 August 1989. The code stipulates i.e. that it 
has to be reviewed in 1992 for which purpose the Commission shall 
present a report on the application of the code. The report is 
contained in section II. At the same time the Commission finds 
that the code is in need of some modifications. The 
Justifications for the proposed modifications are found in section 
IV and V and the proposal in its entirety in the Annex. 
The proposals have been developed after thorough consultations with 
Member States, ECAC, air carriers, consumers and travel agents. 
II. Application of the code of conduct 
1. Waivers granted to CRSs 
The code of conduct prescribed for the first time as a legal 
obligation a single default algorithm for ranking flights in a 
principal display. However, when the code entered into force, 
no CRS operating in the Community was able to immediately 
fulfil the requirements set by the code. For this reason, 
Article 21(2) constituted a waiver of the application of 
Articles 5(3) and 9(5) concerning the principal display until 
1 January 1990 in order to give system vendors the opportunity 
to adapt their CRSs. If for technical reasons compliance with 
the code was not possible by this date a further 12 months' 
waiver might be granted. 
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All CRSs operating at that time in the Community - Amadeus, 
Galileo, Sabre, Datas II (later on merged with Pars into 
Worldspan), GETS - asked the Commission by the end of 1989 for a 
waiver beyond 1 January 1990 the length of which differed from CRS 
to CRS. The waivers were formally granted by the Commission's 
decision of 12 July 1990 to: 
Amadeus until 31 December 1990; 
Galileo until 1 September 1990, extended by Commission's 
decision of 29 November 1990 until 31 December 1990; 
GETS until 31 December 1990; 
Datas II until 30 June 1990. 
Sabre, for which American Airlines had asked as a precaution for a 
waiver until the second quarter of 1990, did not need any waiver 
beyond 1 January 1990. 
2. The Explanatory Note 
The code of conduct constituted a completely new area of 
legislation, without prior practical experience, to which the 
industry had to adapt itself. As experience with its application 
accumulated it became clear that there were some difficulties. 
During the first months of the implementation of the code of 
conduct queries were raised on how to apply the provisions of the 
code in practical terms, in particular with respect to the 
programming and operating of the systems. 
For this reason, the Commission published an Explanatory Note in 
the Official Journal^1), clarifying the provisions of the code of 
conduct in particular for the principal display and the ranking 
criteria. While leaving to each system vendor the freedom to find 
its own individual solution to the requirements of the code, the 
(1) OJ No C 184, 25.7.1990, p. 2. 
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Commission reserved to itself the possibility of examining any 
system in its totality to assess its overall compliance with the 
code of conduct. As the Explanatory Note as such has no legal 
power and is therefore not binding on the parties addressed by the 
code, its clarifications will therefore need to be incorporated 
into the revised code of conduct to the extent it still seems 
necessary or appropriate. The Explanatory Note will therefore 
become unnecessary and can be withdrawn with the entering into 
force of the revised code of conduct. 
3. Complaints and requests for interpretation 
Since the code of conduct entered into force on 1 August 1989 until 
the first 8 months of 1992 the Commission has received 
28 complaints or requests for interpretation including 3 cases 
where the Commission was informed as a precaution, but where the 
matter itself has been settled directly between the parties 
concerned without further action by the Commission. The total 
number includes 3 cases raised under the competition rules, but 
which also affect the code of conduct. 
The number of complaints and requests for help per year has been 
increasing slowly since 1989 as follows: 
Complaints Requests for interpret. 
1989 (5 months) 4 
1990 2 2 
1991 7 4 
1992 (8 months) 5 4 
All cases so far have been admissible. 
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In 1989 and 1990 the majority of cases were requests for 
interpretation on how to apply the provisions of the code of 
conduct. Since 1991 complaints dominate, due to the increasing 
experience with the application of the code of conduct. 
The bulk of these cases (15) refers to the way in which information 
on schedules and fares is displayed. Whereas these questions were 
predominant in the beginning, more and more other subjects are now 
addressed, in particular questions of accessing the principal 
display, of fees charged to participants, be they carriers or 
subscribers, and of participation of carriers in different CRSs. 
The increasing number of complaints as well as the change of 
subjects with their increasing complexity indicate the tough 
competition for market shares between air carriers and system 
vendors. In this respect questions of market access, i.e. the 
possibility of CRSs to compete on a fair, non-discriminatory basis 
in the different markets, gain more and more importance. 
Hitherto, most cases could be solved by agreement on a voluntary 
basis, either between the Commission and the parties concerned or 
directly between the parties, with or without intervention of the 
Commission. No fines have been imposed so far. Most of these 
cases concerned the display of information. 
There are still 10 complaints and requests pending which are more 
complex and therefore need more time for investigation and analysis 
or have been submitted to the Commission recently. 
More detailed information on the complaints is given in the 
fol rowing paragraphs. 
Three complaints concerned the display of joint venture flights 
which could lead to screen padding by including the same flight 
more than once in the principal display. The result was that a 
competing flight was only shown on the next page of the display 
thereby suffering a disadvantage since most bookings are made from 
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the first page of the principal display. The complaint was 
resolved in making a distinction between the types of joint venture 
allowing each airline to display individually where they were 
individually responsible for the sale of a portion of the seats 
i.e. a blocked space arrangement. The practices were modified 
accordingly. 
A similar problem concerning code sharing was resolved by making it 
clear that one specific flight can only be shown once and not for 
each separate flight code. 
A complaint concerned the fact that a reservation system allowed 
the inclusion of air fares not yet approved by the authorities for 
its parent carrier but not similar fares for other air carriers. 
This practice was stopped. Such fares may be included with an 
appropriate annotation but it has to be without discrimination. 
It was also made clear following a complaint that all air fares 
provided by an air carrier must be shown by a CRS. It is not 
possible to limit the display of fares to only these which have 
been coordinated in IATA. 
Two complaints concerned the possibility for "direct access" to air 
carriers' own inventories. In the case raised it was easier to do 
this operation for the parent carrier than for other participating 
air carriers. It was made clear that such discrimination is not 
poss i bIe. The procedures were changed. 
Three complaints concerned abuse of dominant position mainly in 
respect of particpation or non-participation in competing CRSs. 
The complaints are treated under Article 86. 
One complaint concerns the pricing policy of CRSs in particular in 
respect of providing free hardware to subscribers depending on a 
certain number of bookings. This complaint is still under 
examinât ion. 
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Recently two complaints have been received. One concerns 
discrimination between a parent carrier and other participating 
air carriers both within and outside the Community. The other 
concerns the inclusion of certain air fares. They are both 
under examination. 
III. Worldwide aspects of CRS regulation 
The more air transport is liberalized throughout the world, the 
more CRSs tend to go beyond the limits of the current markets 
and to operate on a worldwide basis. The interest of States in 
introducing their own CRS regulation is increasing. But 
national or regional regulations, although helpful, will not 
solve the problems in connection with worldwide operating CRSs, 
because these regulations differ in many and also important 
aspects. The need for global cooperation and global 
regulations in the field of CRSs is evident. 
As both the ECAC and the EC code of conduct are due to be 
revised, ECAC and the Commission decided to cooperate closely 
in this matter in order to develop just one uniform set of 
rules for application in whole Europe. The discussions with 
ECAC have been very fruitful and there are good chances that 
the EC and ECAC will adopt similar texts. 
Since 1985 ICAO, the International Civil Aviation Organization, 
not only encouraged its Member States to develop their own CRS 
regulations, but it also established its own worldwide 
recommendations for the use of CRSs. This task proved to be 
very difficult because of the different and often divergent 
interests of its Member States. The Commission and EC Member 
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States participated actively in the development of the ICAO code 
which was adopted by the ICAO Council in December 1991. This 
code, although it does not prescribe a single algorithm for the 
ranking of flights, represents an important step forward towards a 
general code to be applied worldwide. 
It is to be hoped that most ICAO Member States will follow as a 
minimum this code of conduct. However, the ICAO recommendations do 
not go far enough and abuse is still possible even if these 
recommendations are repeated. This was pointed out in a letter to 
ICAO. 
IV. Needs for an amendment of the code of conduct 
This code constituted a completely new field of legislation without 
prior practical experience and the Council therefore envisaged a 
revision of this Regulation by 31 December 1992. This revision 
should take into account the experiences with the application of 
the code of conduct as well as new developments in the CRS market. 
As the relatively small, yet increasing number of complaints and 
requests for interpretation has shown, the code of conduct has 
proved in general to be quite efficient. Nevertheless it turned 
out that some areas need amendments and further clarifications. 
This concerns in particular certain aspects of the principal 
display and the ranking criteria. The algorithm itself, however, 
is not disputed. These clarifications will also serve to include 
the provisions of the Explanatory Note on the code of conduct for 
CRSs(2> into the new Regulation making the Explanatory Note 
unnecessary. 
(2) 0J No C 184, 25.7.1990, p. 2. 
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Furthermore, three years of experience with the code as well as the 
fast technical and marketing development in the CRS sector have 
revealed possible weaknesses of the current code. Appropriate 
modifications and safeguards against new forms of discrimination 
will be needed in order to keep the code an efficient guarantor of 
compet it ion. 
When the Council limited the present code to scheduled air 
services, the Commission was invited to examine in detail the 
situation concerning CRS use for non-scheduled services and to 
present proposals. Since then, the third package has been adopted 
by the Council which removes most of the distinction between 
scheduled and non-scheduled services. To be consistent with this 
policy and to ensure fair competition between both kinds of air 
transport services, it therefore seems necessary to extend the 
scope of the code of conduct to non-scheduled services. This 
subject has also extensively been discussed within ECAC, in close 
cooperation with the Commission. A majority within ECAC favours 
such an integration. 
One main question which has come up is the possibility for owners 
of a CRS virtually to bar market entry for other CRSs by refusing 
to participate and so preventing information on their flights 
becoming available through rival systems. The question of 
obligatory participation has therefore been raised in particular 
under Article 86 of the competition rules. 
Another type of abuse is possible where the owner of a CRS creates 
a close connection between its own inventory (schedules and seat 
availability) and the CRS thereby securing certain advantages 
concerning the availability of information. The question of 
dehosting has therefore come up as a means to resolve the problems. 
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There are four main areas where modifications seem necessary: 
1. Clarifications/modifications of existing rules 
2. Inclusion of non-scheduled services 
3. Mandatory participation in CRSs 
4. Dehosting or specific safeguards 
1. Clarifications/modifications of existing rules 
The current code of conduct applies to CRSs offered for use and/or 
used in the territory of the Community, of which the services are 
made available to subscribers. But this formula and the 
definition of a subscriber did not make it clear whether corporate 
users and airline offices were included in the scope of the code. 
The proposed modifications will make it clear that the code applies 
to corporate users and airline offices in general (Article 2.k). 
However, the use of CRSs in airline offices, clearly identified as 
such, will be exempted from the provisions concerning the principal 
display and the ranking criteria, whereas all other provisions 
apply (Article 20a). 
Clarification is also necessary with respect to loading of data 
into a CRS and marketing information. System vendors will only be 
able to fulfil the requirements of the code with respect to the 
display and ranking of data if the data submitted to the CRS for 
their part fulfil the requirements as set out in Article 4(1). 
The responsibility of a participating carrier for the quality of 
data it provides to a CRS has therefore been strengthened (Article 
4.1). Furthermore, intermediaries will now be required not to 
manipulate data which are submitted via them in such a way that 
erroneous information is provided (Article 4.1). 
Taking into account the importance that access to market 
information has for the competition between carriers, a 
modification to the code of conduct will ensure that information 
generated by a CRS, when made available, is offered to all 
participating carriers at the same time (Article 6). 
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The provision of a neutral, unbiased principal display, in 
particular as regards the order in which information is presented, 
constitutes the key element of the code of conduct. A number of 
questions as to the meaning of the present code have been raised 
and dealt with in the Explanatory Note. A clear understanding of 
the intentions of the code especially in this area is essential. 
The revised code of conduct, therefore in Article 5 and the Annex: 
clarifies that the principal display must always be accessed 
first except where a consumer requests information for only one 
air carrier; 
clarifies and strengthens the ranking criteria, especially with 
respect to code-sharing and/or joint venture flights; 
introduces specific provisions for the display of information 
on fares. 
The current code of conduct allows a participating carrier or a 
subscriber to terminate its contract with a system vendor without 
penalty after a certain period. This provision had been included in 
order to avoid "liquidated damages" in cases where a contract is 
terminated prematurely, because this can unfairly prevent a carrier 
or subscriber from changing CRSs. 
It has turned out, however, that in cases of termination a system 
vendor may be left with costs which are not directly linked to the 
use of the system by a subscriber for which there may exist long-
term contracts with a third party, e.g. for hardware. Since the 
code stipulates that hardware may be used with any CRS, subject to 
compatibility, and in order to allow a system vendor to recover 
these costs and in order to increase competition in the field of 
third party hardware, a separation of contracts for the use of a 
CRS and the supply of the technical equipment seems appropriate. 
The latter will be dealt under normal contract law, unless the 
contract contains conditions which directly or indirectly would 
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prevent a subscriber from changing systems. Recovery of 
liquidated damages, however, remains prohibited and the contracts 
may not be set up in such a way that they prevent a subscriber from 
changing systems (Article 9.4). 
The current code of conduct allows the use of third-party equipment 
if it is compatible with the system. However, the increasing use 
of intelligent PCs instead of dumb terminals encourages the use of 
third-party software. Provisions have therefore been proposed to 
also allow for third-party software provided it is compatible 
(Article 9.6). 
The use of intelligent PCs and third-party software makes it 
increasingly unmanageable for system vendors to fulfil their 
obligation under the code to ensure that a subscriber does not 
manipulate material supplied by CRSs. The revised code of conduct 
respects this development by limiting this obligation to a 
contractual provision only (Article 9.5). 
Another matter of constant concern to air carriers is billing 
practices by system vendors providing inaccurate, incomplete and 
unclear invoices. In order to ensure minimum standards for 
billing, a new provision has been included in the code of conduct 
(Article 10.2). A more detailed catalogue of requirements did not 
seem appropriate as the wishes of individual participating carriers 
vary widely in this respect. 
Although modern CRSs more and more are offered and used in all 
parts of the world, the rules under which these CRSs operate may 
vary considerably between different countries. As long as there 
is no uniform worldwide code of conduct for CRSs, the provisions on 
reciprocity remain a necessary and important means for system 
vendors and participating carriers to strive for equivalent 
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treatment elsewhere in the world to that provided under the code of 
conduct. The proposed amendments to the code will make it clear 
that reciprocity rules will apply regardless of where 
discrimination exists outside the territory of the Community 
(Article 7.1 and 2). 
2. Inclusion of non-scheduled services 
The majority of air transport passengers in the Community is 
travelling on non-scheduled services. However, air transport 
products offered on these services, both as package tours or 
"bundled products" where air transport only forms one element of 
the whole product, and "seat-only" or "unbundled products" sold via 
intermediaries to the public and distributed through CRSs other 
than in-house systems of air carriers and tour operators, are not 
covered by the regulation. The scheduled and non-scheduled air 
carriers have increasingly been competing directly in each others' 
markets, in particular with respect to unbundled products. In 
order to ensure fair competition both kinds of air transport should 
be treated equally. Consequently, the third liberalization package 
integrates scheduled and non-scheduled services. 
Equal treatment would also mean to give non-scheduled air carriers 
the possibility to distribute their products via the same channels 
and in the same way as those of scheduled air carriers, providing 
neutral, non-misleading information to the consumer. How best to 
incorporate this sector in the code of conduct, bearing in mind the 
different nature of unbundled and bundled products, has extensively 
been discussed in close cooperation with ECAC, air carriers, 
consumers and Member States. 
The solution which serves consumer interests best and ensures non­
discrimination between both kinds of air transport seems to be to 
include non-scheduled services in the scope of the code of conduct 
and to integrate unbundled products in the same display 
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irrespective of whether they are offered on scheduled or non-
scheduled services (Articles 1, 2 and the Annex). However, full 
inclusion in the principal display of bundled products, apart from 
the actual flights, would severely limit the transparency of such 
displays. The detailed information on bundled products will 
therefore be displayed on secondary displays (Article 5.4). The 
general principles and rules of the code, however, will also apply 
to bundled products (Article 1). 
The proposed amendments will ensure non-discriminatory distribution 
of information on unbundled products on scheduled and non-scheduled 
services. Nevertheless, in order to make clear that the products 
are basically the same, but not identical, non-scheduled services 
have to be clearly identified in the interest of the consumer. 
For the same reason, the consumer shall also be afforded the 
possibility of having, on request, the principal display limited to 
scheduled air services (Article 5.2b). 
3. Mandatory participation in CRSs 
When introducing the code of conduct, one of the objectives was to 
ensure fair competition between CRSs. There is no doubt that 
non-participation of an air carrier, in particular when it is 
dominant in a market, can seriously disadvantage a CRS and thus 
distort competition between CRSs. On the other hand, it has also 
to be taken into account that mandatory participation in all CRSs 
at the highest level of functionality would seriously affect 
competition between air carriers, weaken their negotiating power 
towards system vendors and hinder the incentives to further 
enhancements as well as introducing a substantial cost element 
which would in particular damage small and medium-sized air 
carriers. Furthermore, as long as Community air carriers and 
CRSs are not given the same treatment and possibilities in third 
countries as carriers/CRSs of these countries enjoy in the 
Community, a full participation at the highest level will 
disadvantage Community air carriers and CRSs. 
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It is possible to deal with this problem either under the 
competition rules or in the code of conduct. The latter approach, 
however, would seem to have the advantage that the code of conduct 
applies to all CRSs used and/or offered for use in the Community, 
be they single or multi-owned, whereas an amendment to the group 
exemptions concerning agreements between undertakings relating to 
CRSs would only apply to multi-owned CRSs although naturally 
Article 86 applies to single-owned systems. 
The revised code of conduct aims to establish a balance between 
the different interests concerned. The relevant provision in 
Article 3a is restricted to parent carriers and their affiliates. 
It will require such an air carrier to provide to a competing CRS, 
on request, the same information on schedules, fares and 
availability on its services as it provides to its own CRS and to 
accept bookings on its flights from these other CRSs. As 
participation in other systems may impose a severe economic burden 
on small and medium-sized carriers the costs which they may be 
required to pay have been limited to the costs for the reproduction 
of the information to be provided and the booking fees. In this 
way it will be ensured that the economic viability of small 
carriers is not endangered. 
Dehosting or specific safeguards 
An issue of major concern to air carriers is the possibility for a 
parent carrier to obtain competitive advantages by virtue of the 
fact that its internal reservation system is not separated from 
the externally marketed CRS. It is claimed that dehosting is a 
prerequisite for equal, non-discriminatory treatment of parent and 
participating carriers in CRSs and for undistorted competition 
between air carriers. Dehosting means that the CRS functions must 
be separated from the internal reservation and inventory functions 
of air carriers. 
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Some existing CRSs are dehosted. In cases where the publicly 
marketed CRS also serves as the parent carriers's internal 
reservation system it may enjoy advantages in respect of real-time 
up-dating of schedules, last seat availability and up-to-date 
information on fares, whereas the same information for 
participating carriers will depend on the telecommunication links 
established and the loading methods available and selected. This 
gain of time for a parent carrier of a non-dehosted CRS and the 
higher reliability of its data in that CRS may be a decisive 
competitive advantage. 
Furthermore, CRSs generate a lot of marketing information on 
bookings, routes, markets, etc. which are essential for the 
business policy of an air carrier. A parent carrier of a non-
dehosted CRS may have more or less unrestricted, at least quicker 
access to this marketing information than participating carriers. 
The competitive advantage of this is evident. 
For these reasons dehosting is put forward as a solution to this 
problem. On the other hand: 
(a) It is doubtful whether dehosting in itself will eliminate bias 
of a CRS in favour of the hosted carrier. The internal and 
external functions will still be close and the control of the 
CRS remains in the same hands. 
(b) Mandatory dehosting may also cause political difficulties with 
third countries. This may, in return, have repercussions on 
the treatment of Community air carriers to their disadvantage 
in these countries. As long as dehosting is not a requirement 
on a worldwide basis such action has to be considered 
carefully. 
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The proposed modifications in Articles 4.4 and 6 of the code 
therefore do not include dehosting but concentrates on getting the 
underlying principles right. Provisions are introduced which will 
ensure equal treatment by establishing "Chinese walls" by technical 
means and appropriate software safeguards between the internal 
reservation system and the CRS and by prohibiting the parent 
carrier from reserving any specific loading and up-dating method 
for itself. 
V. Comments on individual Articles 
Art icle 1 
Editorial changes 
Art icle 2 (a. b and c) 
New definitions in order to include non-scheduled services with 
both unbundled and bundled air transport products. 
Article 2 (d. formerly I) 
Editorial change to ensure consistency of the terminology of the 
code. 
Art icle 2 (e) 
New definition because of the inclusion of non-scheduled air 
services. 
Article 2 (g. formerly c) 
Clarification. The code only applies to CRSs whose services are 
made available to subscribers. 
Article 2 (J. formerly f) 
Clarification to ensure equal treatment of parent and participating 
carriers with respect to access to marketing information. 
Article 2 (k. formerly g) 
Amendment to make it clear that corporate users are included. 
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Article 2 (m. formerly i) 
Clar if icat ion. 
Article 2 (o. formerly k) 
Editorial change for consistency with the terminology of the code. 
Article 3(1) 
Clarification. 
Article 3(2c) 
Modification to make it clear that system vendors are only allowed 
to recover their direct costs in cases of a normal contract 
termination (in accordance with this paragraph). 
Art icle 3a 
Introduction of an obligation on parent carriers and their 
affiliates not to discriminate against competing CRSs by obliging 
them to provide the same information on own services to competing 
CRSs as to their own CRS and with equal timeliness. This Article 
should be read in conjunction with Article 8.3 for the question of 
t icket ing. 
Art icle 4(1) 
Clarification of the participating carriers' obligation with 
respect to the quality of data provided for inclusion in a CRS. 
Furthermore, the provision prevents intermediaries from 
manipulating data submitted via them for inclusion in a CRS so that 
erroneous information results. 
Article 4(3) 
While requiring in principle a system vendor to load and process 
data submitted to its CRS with equal care and timeliness, it is 
recognized that there might be technical constraints which will 
lead to different treatment. This will be allowed as long as the 
constraints are outside the control of a system vendor. 
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Article 4(4) 
Inclusion necessary to ensure that no parent carrier enjoys 
competitive advantages over its competitors with respect to quicker 
and more reliable loading and up-dating of data. This provision 
should be read in conjunction with paragraph 3.1. 
Art icle 5 
Reordered and partly reworded for clarification. 
Article 5(2a) 
The text now makes it clear that even when a consumer has 
introduced certain limitations the resulting display shall still be 
neutral, in other words it is still to be treated, to the extent 
possible, as a principal display. 
Article 5(3) 
Clarification to ensure that the principles of accuracy, 
comprehensiveness, etc. also apply to displays of air fares. 
Article 5(4) 
To clarify that the principal display is reserved for information 
on flights and types of air transport products. 
Article 6(1) and (2) 
Reordered and with editorial changes for clarification. The 
modifications in Article 6 (1b) will ensure that no parent carrier 
can reserve any information from its CRS for itself and that the 
information has to be offered to all participating carriers with 
equal timeliness, but recognizing that participating carriers may 
choose different transmission methods. 
Article 6(3) 
Inclusion necessary to ensure that only carriers or persons, who 
are entitled by the provisions in paragraphs 1 and 2, have access 
to the data and in particular that no parent carrier has 
unauthorized access to information generated by its CRS. 
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Article 7(1) and (2) 
Editorial adaptations because of modifications elsewhere in the 
code of conduct. The amendments will also clarify that Community 
air carriers and/or system vendor will have the right to deviate 
from the obligations under the code of conduct if they are 
discriminated against and not accorded equivalent treatment to that 
provided under the code outside the territory of the Community, 
regardless where. Within the Community the code applies and 
compliance with its provisions can be assured by the procedures set 
out in Articles 11 to 20. 
Article 8(1) and (2) 
Clar ificat ion. 
Article 8(3) 
Clar i f icat ion. 
Article 9(4) 
The new wording of this paragraph allows for a separation of 
contracts for the use of a CRS on one side and the supply of 
technical equipment on the other side, the latter being subject to 
normal contract law. The provision will also limit a system 
vendor to recover only direct costs related to a normal termination 
of the contract (according to this paragraph) for use of a CRS, but 
no liquidated damages. 
Article 9(5) 
Reordered and modified for clarification. The obligation on 
system vendors to ensure that subscribers do not manipulate data 
supplied by CRSs has been mitigated because its enforcement does 
not seem possible any longer with the use of intelligent PCs and 
the permission of third-party software in travel agencies. 
Article 9(6) 
Modification to allow for third-party software. 
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Article 10(1) 
Modification to increase transparency of the fee structure so that 
participating carriers may only use and pay for services they 
real I y need. 
Article 10(2) 
Inclusion to provide for basic billing requirements. 
Art icle 20a 
This provision exempts CRSs used in airline offices and sales 
counters, clearly identified as such, from the requirements for the 
principal display and the ranking criteria. 
Annex 
The Annex has been reordered for clarification and modified, where 
necessary, in order to include non-scheduled services. In the heading 
it is already made clear, that the Annex only applies to flights 
offering unbundled products, both on scheduled and non-scheduled 
services. 
Paragraph 2 
Editorial changes 
Paragraph 3 
Clar if icat ion. 
Paragraph 4 
The provisions of this paragraph have to be read in conjunction with 
paragraph 3. 
Paragraph 5 
Inclusion necessary for transparency in the interest of the consumer to 
distinguish between scheduled and non-scheduled services in the 
principal display. 
- 24 -
Paragraph 7 
Inclusion necessary for transparency in the interest of the consumer. 
Paragraph 8 
Modifications necessary to avoid that the same air service appears more 
than once in a display. 
Paragraph 9 
This provision covers mainly scheduled services but the second part 
will also, as appropriate, apply to non-scheduled services. 
Paragraph 10 
Clarification and strenghtening of the existing requirement. 
- 25 -
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 2299/89 on a code of conduct for 
computerized reservation systems 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 84(2) thereof, 
Having regard to the proposal from the Commission^1), 
Having regard to the opinion of the European Par Iiament^2), 
Having regard to the opinion of the Economic and Social Committee^3), 
Whereas Council Regulation (EEC) No 2299/89(4) constitutes a 
significant step in respect of undistorted competition between air 
carriers and between computer reservation systems, thereby protecting 
the interests of consumers; 
Whereas it is necessary to extend the scope of Regulation (EEC) 
No 2299/89 and to clarify its provisions and it is appropriate to take 
these measures at Community level to ensure that the objectives of the 
Regulation are met in all Member States; 
Whereas this Regulation is without prejudice to the application of 
Articles 85 and 86 of the Treaty; 
(1) 
(2) 
(3) 
(4) OJ No L 220, 29.7.1989, p. 1 
- 26 -
Whereas Commission Regulation (EEC) No 83/91(5), as amended by 
Regulation (EEC) No 3618/92(6>, exempts from the provisions of Article 
85(1) of the Treaty agreements for the common purchase, development and 
operation of computer reservation systems; 
Whereas the majority of air transport passengers in the territory of 
the Community travels on non-scheduled services; 
Whereas the bulk of these journeys are package tours or bundled 
products with air transport forming only one element of the whole 
product ; 
Whereas "seat-only" or unbundled products on non-scheduled services 
compete in principle directly with air transport products offered on 
scheduled services; 
Whereas it is desirable to treat same products equally and to ensure 
fair competition between both kinds of air transport products and a 
neutral dissemination of information to the consumer; 
Whereas it is appropriate to deal with all matters of use of computer 
reservation systems for all kinds of air transport products in the same 
Council Regulation; 
Whereas it would not be appropriate that bundled air transport products 
are integrated in the principal display; 
Whereas it is desirable to clarify that Regulation (EEC) No 2299/89 
should apply to computer reservation systems offered and/or used in the 
territory of the Community (except for those provisions on the 
principal display and the ranking criteria for systems used by an 
airline in its own office clearly identified as such) and to all final 
consumers, be they individual members of the public or corporate users; 
(5) OJ No L 10, 15.1.1991, p. 9. 
(6) OJ No L 367, 16.12.1992, p. 16. 
- 27 
Whereas a clear distinction between a contract for participation in or 
allowing for use of a system and the supply of the technical equipment 
itself is appropriate, the latter being subject to normal contract law, 
thus allowing a system vendor to claim at least his direct costs in the 
case of termination of a contract in accordance with the provisions of 
this Régulât ion; 
Whereas denial on the part of parent carriers to participate in systems 
other than their own can seriously distort competition between computer 
reservation systems and/or air carriers-, 
Whereas a parent carrier may enjoy unfair advantages arising from its 
control over its computer reservation system in the competition between 
air carriers; whereas therefore total equality of treatment of parent 
and participating carriers is necessary to the extent that a parent 
carrier uses the facilities of its own system; 
Whereas it is desirable in the consumer's interest that a principal 
display shall always be provided for each transaction requested by a 
consumer, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 2299/89 is hereby amended as follows: 
1. Articles 1, 2 and 3 are replaced by the following: 
"Article 1 
This Regulation shall apply to computerized reservation systems 
relating to air transport products, when offered for use and/or used in 
the territory of the Community irrespective of: 
the status or nationality of the system vendor-, 
- 28 -
the source of the information used or the location of the relevant 
central data processing unit-, 
the geographical location of the air transport product concerned. 
Article 2 
For the purposes of this Regulation: 
(a) 'unbundled air transport product' means the carriage by air of a 
passenger between two airports, including any related ancillary 
services and additional benefits offered for sale and/or sold as an 
integral part of that product; 
(b) 'bundled air transport product' means a pre-arranged combination of 
an unbundled air transport product with other services not 
ancillary to air transport, offered for sale and/or sold at an 
inclusive pr ice-, 
(c) 'air transport product' means both unbundled and bundled air 
transport products; 
(d) 'scheduled air service' means a series of flights each possessing 
all the following characteristics: 
it is performed by aircraft for the transport of passengers or 
passengers and cargo and/or mail for remuneration, in such a 
manner that on each flight seats are available for individual 
purchase by consumers (either directly from the air carrier or 
from its authorized agents); 
- 29 -
it is operated so as to serve traffic between the same two or 
more points, either: 
1. according to a published timetable-, or 
2. with flights so regular or frequent that they constitute a 
recognizably systematic series; 
(e) 'fare' means the price to be paid for unbundled air transport 
products and the conditions under which this price applies; 
(f) 'computerized reservation system' (CRS) means a computerized system 
containing information about, inter alia, air carriers' 
- schedules, 
- availabiIity, 
- fares, and 
- related services, 
with or without facilities through which 
- reservations can be made or 
- tickets may be issued, 
to the extent that some or all of these services are made available 
to subscr ibers-, 
(g) 'distribution facilities' means facilities provided by a system 
vendor to a subscriber for the provision of information about air 
carriers' schedules, availability, fares and related services and 
for making reservations and/or issuing tickets, and for any other 
related services; 
- 30 -
(h) 'system vendor' means any entity and its affiliates which are 
responsible for the operation or marketing of a CRS; 
(i) 'parent carrier' means any air carrier which is a system vendor or 
which directly or indirectly, alone or Jointly with others, owns or 
controls a system vendor, as well as any air carrier which is owned 
and/or controlled by it; 
(J) 'participating carrier' means an air carrier which has an agreement 
with a system vendor for the distribution of air transport products 
through a CRS. To the extent that a parent carrier uses the 
distribution and/or information facilities of its own CRS, it shall 
be considered a participating carrier; 
(k) 'subscriber' means a person or an undertaking, other than a 
participating carrier, using the facilities of a CRS under contract 
or other arrangement with a system vendor; 
(I) 'consumer' means any person seeking information about and/or 
intending to purchase an air transport product; 
(m) 'principal display' means a comprehensive neutral display of data 
concerning air services between city-pairs, within a specified time 
per iod; 
(n) 'elapsed journey time' means the time difference between scheduled 
departure and arrival time; 
(o) 'service enhancement' means any product or service offered by a 
system vendor on its own behalf to subscribers in conjunction with 
a CRS other than distribution facilities. 
31 -
Article 3 
1. A system vendor shall allow any air carrier the opportunity to 
participate, on an equal and non-discriminatory basis, in its 
distribution facilities within the available capacity of the system 
concerned and subject to any technical constraints outside the control 
of the system vendor. 
2. (a) A system vendor shall not: 
attach unreasonable conditions to any contract with a 
participating carrier; 
require the acceptance of supplementary conditions which, 
by their nature or according to commercial usage, have no 
connection with participation in its CRS and shall apply 
the same conditions for the same level of service. 
(b) A system vendor shall not make it a condition of participation 
in its CRS that a participating carrier may not at the same 
time be a participant in another system. 
(c) A participating carrier may terminate its contract with a 
system vendor on giving notice which need not exceed six 
months, to expire no earlier than the end of the first year. 
In such a case a system vendor may not be entitled to recover 
more than the costs directly related to the termination of the 
contract. 
3. Loading and processing facilities provided by the system vendor 
shall be offered to all participating carriers without discrimination. 
- 32 -
4. If the system vendor adds any improvement to the distribution 
facilities provided or the equipment used in the provision of the 
facilities, it shall offer these improvements to all participating 
carriers on the same terms and conditions, subject to current technical 
I imitât ions." 
2. The following Article 3a is inserted: 
"Article 3a 
1. (a) A parent carrier may not discriminate against a competing 
CRS by refusing to provide to a competing CRS with equal 
timeliness the same information on schedules, fares and 
availability relating to its own air services as it 
provides to its CRS or to distribute its air transport 
products through another CRS to the same extent, at the 
same level, as promptly or on comparable terms as through 
its own CRS, or by refusing to accept a reservation made 
through a competing CRS for any of its air transport 
products which are distributed through its own CRS. 
(b) The parent carrier shall not be obliged to accept any costs 
in this connection except for reproduction of the 
information to be provided and for the bookings made. 
2. Subject to the procedure set out in Article 7(3) and (4), the 
obligation imposed by this Article shall not apply in favour of a 
competing CRS which is in breach of Article 4(4) or whose parent 
carriers have access to information in breach of Article 6." 
- 33 -
3. Articles 4, 5 and 6 are replaced by the following: 
"Article 4 
1. Participating carriers and others providing material for inclusion 
in a CRS shall ensure that the data submitted are comprehensive, 
accurate, non-misleading and transparent, inter al8a. enabling a system 
vendor to meet the requirements of the ranking criteria as set out in 
the Annex. 
Data submitted via intermediaries shall not be manipulated by them in a 
manner that would lead to inaccurate, misleading or discriminatory 
informat ion. 
2. A system vendor shall not manipulate the material referred to in 
paragraph 1 in a manner that would lead to inaccurate, misleading or 
discriminatory information being provided. 
3. A system vendor shall load and process data provided by 
participating carriers with equal care and timeliness subject only to 
the constraints of the loading method selected by individual 
participating carriers and to the standard formats used by the said 
vendor. 
4. A parent carrier shall not reserve any specific loading and/or 
processing procedure for itself. 
Article 5 
1. (a) Displays by a CRS shall be clear and non-discriminatory. 
(b) A system vendor shall not intentionally or negligently display 
in its CRS inaccurate or misleading information. 
- 34 -
2. (a) A system vendor shall provide through its CRS a principal 
display for each individual transaction and shall include 
therein the data provided by participating carriers on flight 
schedules, fare types and seat availability in a clear and 
comprehensive manner and without discrimination or bias, in 
particular as regards the order in which information is 
presented within the limits specified by the consumer at any 
one time. 
(b) The consumer shall be afforded the possibility of having, on 
request, the principal display limited to scheduled air 
services. 
(c) In constructing and selecting city-pairs for inclusion in the 
principal display no discrimination on the basis of airports 
serving the same city shall be effected. 
(d) Ranking of flight options in the principal display shall be as 
set out in the Annex, within the limits specified by the 
consumer at any one time. 
(e) Criteria to be used for ranking shall not be based on any 
factor directly or indirectly relating to carrier identity and 
shall be applied on a non-discriminatory basis to all 
participating carriers. 
3. Where a system vendor provides information on fares in a separate 
display this display shall be neutral and non-discriminatory and shall 
contain at least the fares provided for all the flights of 
participating carriers shown in the principal display. This 
information shall be made available within the limits specified by the 
consumer at any one time. 
- 35 -
4. Information on bundled products as to, inter alia, who is 
organizing the tour, places available and prices, shall not be 
displayed in the principal display. 
Article 6 
1. Information, statistical or otherwise, may be made available by a 
system vendor from its CRS only in accordance with the following 
conditions: 
(a) information concerning individual bookings on an equal basis to the 
air carrier or air carriers participating in the service covered by 
the booking; 
(b) information when offered, in aggregate or anonymous form, to 
participating air carriers, including parent carriers, on a non­
discriminatory basis at the same time and to the same extent and on 
condition that, when requested, it is provided with equal 
timeliness, subject to the transmission method selected by the 
individual carrier; 
(c) other information with the consent of the air carrier concerned and 
subject to any agreement between a system vendor and participating 
carriers. 
2. A system vendor shall make available personal information 
concerning a passenger and generated by a subscriber to others not 
involved in the transaction only with the consent of the passenger. 
3. A system vendor shall ensure by technical means and appropriate 
safeguards at least regarding software that the limitations on access 
to information specified in paragraphs 1 and 2 are complied with. 
- 36 -
In particular in the case where the same technical facilities are used 
by the CRS and one or more carriers for (its) their own activities, the 
system vendor must not reserve to the abovementioned carriers, data, 
processing or information which are not available to the other 
participating carriers, or which are provided under different 
cond i t i ons." 
4. Article 7(1) and (2) are replaced by the following: 
"1. The obligations of a system vendor under Articles 3 to 6 shall not 
apply in respect of a parent carrier of a third country to the extent 
that its CRS outside the territory of the Community does not offer 
Community air carriers equivalent treatment to that provided under this 
Regulation and under Commission Regulation (EEC) No * 
2. The obligations of parent or_ participating carriers under Articles 
3a, 4 and 8 shall not apply in respect of a CRS controlled by (an) air 
carrier(s) of one or more third country (countries) to the extent that 
the parent or participating carrier(s) is (are) not accorded 
equivalent treatment outside the territory of the Community to that 
provided under this Regulation and under Regulation (EEC) No 
*0J No L 
5. Article 8 is replaced by the fol lowing: : 
"1. A parent carrier shall not, directly or indirectly, link the use 
of any specific CRS by a subscriber with the receipt of any commission 
or other incentive or disincentive for the sale of air transport 
products available on its flights. 
2. A parent carrier shall not, directly or indirectly, require use of 
any specific CRS by a subscriber for any sale or issue of tickets for 
any air transport products provided either directly or indirectly by 
itself. 
- 37 -
3. Any condition which an air carrier may require of a travel agent 
when authorizing it to sell and issue tickets for its air transport 
products shall be without prejudice to paragraphs 1 and 2." 
6. Article 9(4), (5) and (6) are replaced by the following: 
"4. (a) A system vendor shall not attach unreasonable conditions to any 
subscriber contract allowing for the use of its CRS and, in 
particular, a subscriber may terminate its contract with a 
system vendor on giving notice which need not exceed three 
months to expire no earlier than the end of the first year. 
In such a case a system vendor may not be entitled to recover 
more than the costs directly related to the termination of the 
contract. 
(b) Subject to paragraph 2, the supply of technical equipment is 
not subject to the conditions set out in (a). 
5. A system vendor shall provide in each subscriber contract that: 
(a) the principal display, conforming to Article 5, is accessed 
for each individual transaction except where a consumer 
requests information for only one air carrier or where the 
consumer requests information for bundled air transport 
products alone; 
(b) the subscriber does not manipulate material supplied by CRSs in 
a manner that would lead to inaccurate, misleading or 
discriminatory presentation of information to consumers. 
6. A system vendor shall not impose any obligation on a subscriber to 
accept an offer of technical equipment or software, but may require 
that equipment and software used are compatible with its own system." 
- 38 -
7. Article 10(1) is replaced by the following: 
"1. Any fee charged by a system vendor shall be non-discriminatory, 
reasonably structured and reasonably related to the cost of the service 
provided and used, and shall, in particular, be the same for the same 
level of service. 
The billing for the services of a CRS shall be sufficiently detailed to 
allow the participating carriers and subscribers to see exactly which 
services have been used and the fees therefore." 
8. Article 21 is replaced by the following: 
"Article 21 
The provisions in Article 5, Article 9(5) and the Annex to this 
Regulation shall not apply to a CRS used by an air carrier or a group 
of air carriers in its (their) own office and sales counters, clearly 
ident ified as such." 
9. Article 23 is replaced by the following: 
"Article 23 
The Council shall decide on the revision of this Regulation by 
31 December 1997, on the basis of a Commission proposal to be submitted 
by 31 March 1997 accompanied by a report on the application of this 
Regulation." 
10. The Annex is replaced by the Annex hereto. 
- 39 -
Art icle 2 
This Regulation shall enter into force on 1 April 1993. 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, For the Council 
The President 
- 40 -
ANNEX 
"RANKING CRITERIA FOR FLIGHTS OFFERING 
UNBUNDLED AIR TRANSPORT PRODUCTS 
1. Ranking of flight options in principal displays, for the day or 
days requested, shall be in the following order unless requested in 
a different way by a consumer for an individual transaction: 
(i) all non-stop direct flights between the city-pairs 
concerned; 
(ii) other direct flights, not involving a change of aircraft, 
between the city-pairs concerned; 
(Mi) connecting flights. 
2. Consumer shall at least be afforded the possibility of having, on 
request, the principal display ranked by departure or arrival time 
and/or elapsed journey time. Unless otherwise requested by a 
consumer, a principal display shall be ranked by departure time for 
group (I) and elapsed journey time for groups (ii) and (iii). 
3. Where a system vendor chooses to display information for any city-
pair in relation to the schedules or fares of non-participating 
carriers, but not necessarily all such carriers, such information 
shall be displayed in an accurate, non-misleading and non­
discriminatory manner as between those carriers displayed. 
- 41 
4. If, to the best knowledge of the system vendor, information as to 
the number of direct scheduled air services and the identity of the 
air carriers concerned is not comprehensive, this shall be clearly 
stated on the relevant display. 
5. Flights other than scheduled air services shall be clearly 
identified. 
6. Flights involving stops en route shall be clearly identified. 
7. For code-sharing and/or Joint venture flights the air carrier 
actually operating the flight shall be clearly identified. 
8. A system vendor shall not use the screen space in its principal 
displays in a manner which gives excessive exposure to one 
particular travel option or which displays unrealistic travel 
options. For direct services, no flight shall be shown more than 
once in a principal display. 
For multi-sector services involving a change of aircraft, no 
combination of flights shall be shown more than once in a principal 
display. 
9. A principal display shall, wherever practicable, include connecting 
flights on scheduled air services of participating carriers 
constructed by using a minimum number of nine connecting points. A 
system vendor shall accept a request by a participating carrier to 
include an indirect service unless the routing is in excess of 130% 
of the great circle distance between the two airports. Connecting 
points with routings in excess of 130% need not be used. 
10. Flights, involving a change of aircraft, shall be treated and 
displayed as connecting flights, with one line per aircraft 
segment." 

ISSN 0254-1475 
COM(92) 404 final 
DOCUMENTS 
EN 15 
Catalogue number : CB-CO-92-625-EN-C 
ISBN 92-77-51368-3 
Office for Official Publications of the European Communities 
L-2985 Luxembourg