No C 294/12 Official Journal of the European Communities 18. 11. 88 
Proposal for a Council Regulation (EEC) on a code of conduct for computerized reservation 
systems 
COM(88) 447 final 
(Submitted by the Commission on 31 October 1988) 
(88/C 294/08) 
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, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the bulk of airline reservations are made 
through computerized reservation systems (CRSs); 
Whereas such systems can, if properly used, provide an 
important and useful service to air carriers, travel agents 
and the travelling public by providing easy access to 
up-do-date and accurate information on flights, fares 
and seat availability, making reservations and in some 
cases issuing tickets and boarding passes; 
Whereas abuses in the form of denial of access to the 
systems, or discrimination in the provision, loading or 
display of data or unreasonable conditions imposed on 
participants or subscribers can seriously disadvantage air 
carriers, travel agents and ultimately consumers; 
Whereas this Regulation is without prejudice to the 
application of Articles 85 and 86 of the Treaty; 
Whereas Commission Regulation (EEC) No 2672/88 O 
exempts from the provisions of Article 85 (1) agreements 
for the common purchase, development and operation of 
computerized reservation systems; 
C) OJ No L 239, 30. 8. 1988, p. 13. Whereas a mandatory code of conduct applicable to all 
CRSs and/or distribution facilities offered for use 
and/or used in the Community could ensure that CRSs 
are used in a non-discriminatory and transparent way, 
subject to certain safeguards, so avoiding their misuse 
while reinforcing undistorted competition between air 
carriers and between CRSs and thereby protecting the 
interests of consumers; 
Whereas it would not be appropriate to impose obli­
gations on a CRS vendor in respect of an air carrier of a 
third country which alone or jointly with others owns 
and/or controls another CRS which does not conform 
with this code or offer equivalent treatment; 
Whereas a complaints, investigation and enforcement 
procedure for non-compliance with such a code is 
desirable, 
HAS ADOPTED THIS REGULATION: 
Article 1 
This Regulation shall apply to computerized reservation 
systems (CRSs) offered for use and/or used in the 
territory of the European Communities for the distri­
bution and sale of air transport products irrespective of: 
— the status or nationality of the system vendor, 
— the source of the information used or the location of 
the relevant central data-processing unit, 
— the geographical location of the air transport service 
concerned. 
Article 2 
For the purposes of this Regulation: 
(a) 'air transport product' means a scheduled or 
non-scheduled passenger air service or air freight 
service or a combination of passenger and freight 
services, including any related ancillary services and 
additional benefits offered for sale and/or sold as an 
integral part of the air service; 
18. 11. 88 Official Journal of the European Communities No C 294/13 
(b) 'CRS' means a computerized reservation system 
containing information about, inter alia, air carriers': 
— schedules, 
— availability, 
— fares, 
— rates, and 
— related services with or without facilities through 
which reservations can be made or tickets and 
airwaybills may be issued, or both 
and which makes some or all of these services 
available to subscribers; 
(c) 'consumer' means any person seeking information 
about and/or intending to purchase an air transport 
product; 
(d) 'distribution facilities' means facilities provided by a 
system vendor to a subscriber or consumer for the 
provision of information about air carriers' 
. schedules, availability, fares, rates and related 
services and for making reservations and/or issuing 
tickets, airwaybills and for any other related services; 
(e) 'elapsed journey time' means the time difference 
between normal departure and arrival time; 
(f) 'parent carrier' means an air carrier which is a system 
vendor or which directly or indirectly alone or 
jointly with others owns or controls a system vendor; 
(g) 'participating carrier' means an air carrier which has 
an agreement with a system vendor for the distri­
bution of its air transport products through a CRS. 
To the extent that a parent carrier uses the distri­
bution facilities of its own CRS, it shall be 
considered a participating carrier; 
(h) 'principal display' means a comprehensive neutral 
display of data concerning services between city 
pairs, within a specified time period, containing inter 
alia all point-to-point air services; 
(i) '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 members of the public (either directly from 
the air carrier or from its authorized agents); 
— 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. 
To the extent that non-scheduled services provide 
'seat only' fares, which are sold directly by the 
carrier or its authorized agent, they shall be included 
in the definition of scheduled air service; 
(j) 'service enhancement' means any product or service 
offered by a system vendor on its own behalf to 
subscribers or consumers in conjunction with a CRS 
other than distribution facilities; 
(k) 'subscriber' means an undertaking, other than a 
participating carrier, using under contract or other 
arrangement with a system vendor a CRS for the 
sale of air transport products; 
(1) 'system vendor' means any entity and its affiliates 
which are responsible for the operation or marketing 
of a CRS. 
Article 3 
1. A system vendor offering distribution facilities in 
one of the following sectors, namely, scheduled 
passenger air services, non-scheduled passenger air 
services, scheduled air freight services or non-scheduled 
air freight services, shall allow any air carrier the oppor­
tunity to participate in the appropriate sectoral distri­
bution facilities within the available capacity of the 
system and within technical limits outside the control of 
the system vendor. 
2. Any fee charged by a system vendor to partici­
pating carriers shall be non-discriminatory and 
reasonably related to the cost of the service provided, 
and shall, in particular be the same for the same level of 
service. 
3. (a) A system vendor shall not: 
— attach unreasonable conditions to any contract 
with a participating carrier, 
No C 294/14 Official Journal of the European Communities 18. 11. 88 
— 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 shall have the right to 
terminate his contract with a system vendor 
without penalty on giving notice which need not 
exceed six months to expire no earlier than the 
end of the first year. 
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 limi­
tations. 
5. A system vendor shall, on request, provide to 
interested parties details of current procedures, fees, 
systems facilities, editing and display criteria used. 
However, this provision does not oblige a system vendor 
to disclose proprietary information such as software 
programmes. 
6. Any proposed changes to fee levels, conditions or 
facilities offered and the basis therefor shall be 
communicated to all participating carriers on a 
non-discriminatory basis. 
Article 4 
1. An air carrier providing material for inclusion in a 
CRS shall ensure that the data submitted are compre­
hensive, accurate, non-misleading and transparent. 
2. A system vendor shall not manipulate material 
supplied by an air carrier, either directly or indirectly 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 to the constraints of the loading 
method selected by individual participating carriers and 
to the standard formats used by the system vendor. 4. Subject to Article 7, a parent or participating 
carrier may not refuse, except for an objective and 
legitimate reason of a technical or commercial nature, to 
provide to a competing CRS the same information on 
schedules, fares, rates and availability relating to its own 
services as it provides to the CRS in which it is a partici­
pating carrier, nor shall it refuse to accept a reservation 
made through a competing CRS unless the fee(s) 
charged are higher than in the CRS of which it is a 
participating carrier. 
Article ") 
1. A system vendor shall provide a principal display 
and shall include therein data provided by participating 
carriers on schedules, fares, rates, seat and capacity avai­
lability in a clear and comprehensive manner and without 
discrimination or bias, in particular as regards the order 
in which information is presented. There may be separate 
principal displays for scheduled, charter and freight air 
services. 
2. A system vendor shall not intentionally or negli­
gently display inaccurate or misleading information, and 
in particular: 
— the criteria to be used for ranking information 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, 
no discrimination on the basis of different airports 
serving the same city shall be exercised in 
constructing and selecting city-pairs. 
3. (a) Ranking of flight options in the principal display, 
for the day or days requested, shall be as set out 
in the Annex unless requested in a different way 
by a consumer for an individual transaction. 
(b) The Annex may be amended in accordance with 
the procedure set out in paragraph 4. 
4. The Commission shall be assisted by a committee 
composed of the representatives of the Member States 
and chaired by the representative of the Commission. 
The representative of the Commission shall submit to the 
committee a draft of the measures to be taken. The 
committee shall deliver its opinion on the draft within a 
time limit which the chairman may lay down according 
to the urgency of the matter. 
18. 11. 88 Official Journal of the European Communities No C 294/15 
The opinion shall be delivered by the majority laid down 
in Article 148(2) of the Treaty in the case of Decisions 
which the Council is required to adopt on a proposal 
from the Commission. The votes of the representatives of 
the Member States within the committee shall be 
weighted in the manner set out in that Article. The 
chairman shall not vote. 
The Commission shall adopt measures which shall apply 
immediately. However, if these measures are not in 
accordance with the opinion of the committee, they shall 
be communicated by the Commission to the Council 
forthwith. In that event the Commission may defer 
application of the measures which it has decided for a 
period of not more than one month from the date of 
such communication. 
The Council, acting by a qualified majority, may take a 
different decision within the time limit referred to in the 
previous paragraph. 
Article 6 
A system vendor shall provide information, statistical or 
otherwise, generated by its CRS, other than that offered 
as an integral part of the distribution facilities, only as 
follows: 
(a) information concerning individual bookings shall be 
made available on an equal basis to the air carrier or 
air carriers participating in the service covered by the 
booking; 
(b) information in aggregate or anonymous form when 
made available on request to any air carrier shall be 
offered to all participating air carriers on a 
non-discriminatory basis; 
(c) other information generated by the CRS shall be 
made available with the consent of the air carrier 
concerned and subject to any agreement between a 
system vendor and participating airlines. 
Article 7 
1. Subject to Article 11, 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 does not conform with this Regulation or does not 
offer Community air carriers equivalent treatment to that 
provided under this Regulation. 
2. A system vendor proposing to avail itself of the 
provisions of paragraph 1 must notify the Commission of 
its intentions and the reasons therefor at least 14 days in 
advance of such action. Article 8 
1. A parent or participating carrier shall not link the 
use of any specific CRS by a subscriber with the receipt 
of any commission or other incentive for the sale of or 
issuance of tickets or airwaybills for any of its air 
transport products. 
2. A parent or participating carrier shall not require 
use of any specific CRS by a subscriber for any sale or 
issuance of tickets or airwaybills for any air transport 
products provided either directly or indirectly by itself. 
3. Paragraphs 1 and 2 shall be without prejudice to 
any condition which an air carrier may require of a 
travel agent or freight forwarder when authorizing them 
to sell and issue tickets or airwaybills for its air transport 
products. 
Article 9 
1. A system vendor shall make any of the distribution 
facilities of a CRS available to any subscriber on a 
non-discriminatory basis. Any fee charged shall be non­
discriminatory and reasonably related to the cost of the 
service provided, and shall, in particular, be the same for 
the same level of service. 
2. A system vendor shall not require a subscriber to 
sign an exclusive contract, or directly or indirectly 
prevent a subscriber from subscribing to or using any 
other system or systems. 
3. A service enhancement offered to any one 
subscriber shall be offered by the system vendor to all 
subscribers on a non-discriminatory- basis. 
4. A system vendor shall not attach unreasonable 
conditions to any contract with a subscriber and in 
particular a subscriber may terminate his contract with a 
system vendor, without penalty, on giving notice which 
need not exceed three months to expire no earlier than 
the end of the first year. 
5. A system vendor shall ensure either through 
technical means or through the contract with the 
subscriber that the principal display is provided for each 
individual transaction. However, for any one transaction 
a subscriber may re-order data or use alternative displays 
to meet a preference expressed by a consumer. 
No C 294/16 Official Journal of the European Communities 18. 11. 88 
Article 10 
1. Complaints regarding non-observance of this Regu­
lation shall be addressed to the Commission. 
2. Complaints may be submitted by: 
(a) Member States; 
(b) natural or legal persons who claim a legitimate 
interest. 
3. The Commission shall immediately forward to the 
Member States copies of the complaints and applications 
and of the most important documents sent to it or which 
it sends out in the course of such procedures. 
Article 11 
Upon receipt of a notification pursuant to Article 7 the 
Commission shall without delay determine whether 
discrimination within the meaning of Article 7 exists. If 
this is found to be the case the Commission shall decide 
that the obligations under this Regulation do not apply 
to the air carrier concerned and shall so inform all 
system vendors in the Community and Member States. If 
discrimination within the meaning of Article 7 does not 
exist the Commission shall so inform the system vendor 
concerned. 
Article 12 
1. In carrying out the duties assigned to it by this 
Regulation, the Commission may obtain all necessary 
information from the Member States and from under­
takings and associations of undertakings. 
2. The Commission may fix a time limit of not less 
than one month for the communication of the requested 
information. 
3. When sending a request for information to an 
undertaking or association of undertakings, the 
Commission shall forward a copy of the request at the 
same time to the Member State in whose territory the 
head office of the undertaking or association of under­
takings is situated. 
4. In its request, the Commission shall state the legal 
basis and purpose of the request and also the penalties 
for supplying incorrect information provided for in 
Article 16 (1) (a). 
5. The owners of the undertakings or their represen­
tatives and, in the case of legal persons or of companies, 
firms or associations not having legal personality, the 
person authorized to represent them by law or by their 
rules shall be bound to supply the information requested. 6. All standard contracts between system vendors and 
participating carriers or subscribers shall be 
communicated by the system vendor to the Commission. 
Article 13 
1. In carrying out the duties assigned to it by this 
Regulation, the Commission may undertake all necessary 
investigations into undertakings and associations of 
undertakings. To this end, officials authorized by the 
Commission shall be empowered: 
(a) to examine the books and other business records; 
(b) to take copies of, or extracts from, the books and 
business records; 
(c) to ask for oral explanations on the spot; 
(d) to enter any premises, land and vehicles used by 
undertakings or associations of undertakings. 
2. The authorized officials of the Commission shall 
exercise their powers upon production of an authori­
zation in writing specifying the subject matter and 
purpose of the investigation and the penalties provided 
for in Article 16 (1) (b) in cases where production of the 
required books or other business records is incomplete. 
In good time, before the investigation, the Commission 
shall inform the Member State, in whose territory the 
same is to be made, of the investigation and the identity 
of the authorized officials. 
3. Officials of the Member State in whose territory 
the investigation is to be made may assist the 
Commission officials in carrying out their duties, at the 
request of the Member State or of the Commission. 
4. Where an undertaking opposes an investigation 
ordered pursuant to this Article, the Member State 
concerned shall afford the necessary assistance to the 
officials authorized by the Commission to enable them to 
make their investigation. To this end, Member States 
shall take the necessary measures by 31 July 1989, after 
consulting the Commission. 
Article 14 
1. Information acquired as a result of the application 
of Articles 12 and 13 shall be used only for the purposes 
of the relevant request or investigation. 
2. Without prejudice to the provisions of Articles 10 
and 20, the Commission and the competent authorities 
of the Member States, their officials and other servants 
shall not disclose information of a kind covered by the 
obligation of professional secrecy which has been 
acquired by them as a result of the application of this 
Regulation. 
18. 11. 88 Official Journal of the European Communities No C 294/17 
3. The provisions of paragraphs 1 and 2 shall not 
prevent publication of general information or of surveys 
which do not contain information relating to particular 
undertakings or associations of undertakings. 
Article 15 
1. When an undertaking or association of under­
takings does not supply the information requested within 
the time limit fixed by the Commission, or supplies 
incomplete information the Commission shall by decision 
require the information to be supplied. The decision shall 
specify what information is required, fix an appropriate 
time limit within which it is to be supplied and indicate 
the penalties provided for in Article 16 (1) (a) as well as 
the right to have the decision reviewed by the Court of 
Justice. 
2. At the same time the Commission shall send a copy 
of its decision to the competent authority of the Member 
State in whose territory the head office of the under­
taking or association of undertakings is situated. 
Article 16 
1. The Commission may, by decision, impose fines on 
undertakings or associations of undertakings of from 
1000 to 100 000 ECU where, intentionally or negli­
gently: 
(a) they supply incorrect information in response to a 
request made pursuant to Article 12 or do not supply 
information within the time limit fixed: 
(b) they produce the required books or other business 
records in incomplete form during investigations or 
refuse to submit to an investigation pursuant to 
Article 13 (1). 
2. The Commission may, by decision, impose fines on 
system vendors, parent carriers, participating carriers 
and/or subscribers for infringements of this Regulation 
up to a maximum of 10 % of the annual turnover for the 
relevant activity of the undertaking concerned. 
In fixing the amount of the fine, regard shall be had both 
to the gravity and to the duration of the infringement. 3. Decisions taken pursuant to paragraphs 1 and 2 
shall not be of a penal nature. 
Article 17 
The Court of Justice shall have unlimited jurisdiction 
within the meaning of Article 172 of the Treaty to 
review decisions whereby the Commission has imposed a 
fine; it may cancel, reduce or increase the fine. 
Article 18 
For the purposes of applying Article 16, the ECU shall 
be that adopted in drawing up the budget of the 
Communities in accordance with Articles 207 and 209 of 
the Treaty. 
Article 19 
1. Before taking decisions as provided for in Article 
16, the Commission shall give the undertakings or asso­
ciations of undertakings concerned the opportunity of 
being heard on the matters to which the Commission 
takes, or has taken, objection. 
2. If the Commission or the competent authorities of 
the Member States consider it necessary, they may also 
hear other natural or legal persons. Applications by such 
persons to be heard shall be granted when they show a 
sufficient interest. 
Article 20 
1. The Commission shall publish the decisions which 
it adopts pursuant to Article 16. 
2. The publication shall state the names of the parties 
and the main content of the decision; it shall have regard 
to the legitimate interest of undertakings in the 
protection of their business secrets. 
Article 21 
1. This Regulation shall apply from 1 January 1989 to 
all CRSs offered for use and/or used in the Community 
for the first time after that date. It shall apply to other 
CRSs from 1 April 1989. 
2. This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
^oC^tB^ COfhci^l]oLirn^lofrricE^ro^^nComrnLinrLi^ t^ tt ^ 
^nvB^( 
t rhe principal displays shall provideareasonable number of traveloptions from among existing services 
for anycity-pairrenuestedmcludmg indirect services A participatingcarner may request themclusion 
of anindirectserviceunlesstheroutingisine^cessof t^O^Bo of thegreatcircledistancebet^veenthe 
t^vo airports 
2 ^system vendor shall not use the screen space in its principal displays mamanner^hich gives excessive 
exposure to one particular travel option or ^vhich displays unrealistic travel options 
3 Where a system vendor chooses to display information in relation to the schedules or fares of 
non-participating carriers such information shall be displayed m an accurate, non misleading and 
nondiscriminatory manner as between those carriers displayed 
4 If information as to the number and identity of and servicesBfaresBrates offered by air carriers on a 
point-to-point air service is not comprehensive this shall be clearly stated on the relevant display 
t ^.anl^ing of flight options in the principal display for scheduled air services, for the day or days 
re^uested^ shall be in the following order unless requested in a different ^vay by a consumer for an 
individual transaction 
^ all non-stop flights between the city-pairs concerned in order of departure time or arrival time, 
^0 other direct flights, bet^veenthecity-pairs concerned, in order ofdeparture or arrivaltimeandBor 
elapsed journey time, 
^nO connecting flights in order of departure or arrival time andBor elapsed journey time 
^.an^ing criteria once chosen, shall be applied consistently in any given display 
2 Scheduled flights involving stops ^ ^^ change of aircraft, change of airport andBor code-sharing 
shall beclearly identified codeshanng flights shall be treated as connectingflights unless the code 
shanngarrangement guarantees embarl^ationontheconnecting flight, m^vhich mstancecode-shanng 
flights may be displayed in preference to normal connecting flights