WRITTEN QUESTION P-0062/00 by Evelyne Gebhardt (PSE) to the Commission. Increase in air fares.
Date: 2000-01-18
Institutions: European Parliament, Provisional data
Subjects: air freight rate, civil aviation, infringement of EU law, price increase, transport company, travel agency, unlawful agreement

C 280 E/166

Official Journal of the European Communities

EN

3.10.2000

Answer given by Mrs Diamantopoulou on behalf of the Commission

(17 February 2000)

the choice of cultural and ethnic categories on equal
As the Honourable Member will be aware,
opportunities forms is not in itself the subject of Community law. However, Directive 95/46/EC of the
Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the
processing of personal data and on the free movement of such data (1) expressly prohibits the processing of
personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-
union membership, and the processing of data concerning health or sex life. This prohibition is lifted in a
number of limited circumstances, including where the consent of the individual concerned has been given.

Subject to the conditions laid down in that Directive, the Commission believes that the collection of
statistical information on discrimination related to racial and ethnic origin, whether real or presumed, can
make a useful contribution to ensuring equality of treatment and opportunity. The proposal for a Council
decision establishing a Community action programme to combat discrimination (2001-2006), adopted by
the Commission on 25 November 1999 (2), includes a strand devoted to the collection and analysis of data
related to discrimination on the grounds covered by the programme, including racial and ethnic origin.

As regards the particular categories to be used in such monitoring, the Commission believes that this
should be left to the particular Member States concerned, given the existence of different minority ethnic
groups in the different Member States. The Commission cannot in any case comment on the choices made
in the internal documents of political parties.

(1) OJ L 281, 23.11.1995.
(2) COM(99) 567 final.

(2000/C 280 E/189)

WRITTEN QUESTION P-0062/00

by Evelyne Gebhardt (PSE) to the Commission

(18 January 2000)

Subject: Increase in air fares

Is the European Commission aware that

1.
the major European airlines, acting in unison, have
terminated their current agency contracts with travel agencies and offered them new contracts involving
lower agency fees, those fees being in every case identical?

2.
Is it also aware that the travel agencies have offset the consequent reduction in their revenue by
levying a new (cid:145)transaction fee(cid:146) on travellers who, being final consumers, are therefore unable to avoid a
hidden and mutually agreed increase in air fares?

3.
Does the Commission share my view that, although travellers may circumvent this increase in air
fares by booking with the airlines directly, they must, if they do so, put up with poorer service and accept
that a large number of jobs in travel agencies may be lost?

4.
Does the European Commission consider that such price agreements, the cost of which is ultimately
paid by the final consumer and which jeopardise the job security of people working in travel agencies, are
compatible with current European law? When, and how, will the Commission intervene if there has been a
breach of Community law or if even the slightest whiff of suspicion exists that Community law has been
breached?

Answer given by Mr Monti on behalf of the Commission

(17 February 2000)

The Commission informs the Honourable Member that it has been actively studying the relationship
between airlines and travel agents. In a recent competition law decision (1) the Commission set out its
policy on the commissions paid by airlines to travel agents. One of the facts established in this decision

3.10.2000

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Official Journal of the European Communities

C 280 E/167

was that British Airways had reduced the basic commission paid to travel agents in the United Kingdom,
and introduced a new scheme by which travel agents could earn extra commission by meeting certain
targets. The decision found that these supplementary commission schemes were abuses of British Airways(cid:146)
dominant position on the United Kingdom market for travel agents services. These commission schemes
secured the loyalty of travel agents rather than being given in return for extra services from the travel
agents or cost savings realised by British Airways. Several complaints have been received of similar
behaviour by other Community airlines. The Commission is taking all measures necessary to ensure that
the principles in the British Airways decision are applied to other Community airlines in equivalent
situations.

However the Commission does not currently have evidence that airlines have colluded to lower their basic
commissions simultaneously. Also it does not have any indication that the majority of travel agents are
introducing the (cid:145)transaction levy(cid:146) described in a concerted fashion. As a result it is not clear that the
(cid:145)increase in air fares(cid:146) described is taking place. The Commission(cid:146)s efforts have been focussed on the new
supplementary commission schemes introduced by some airlines which allow travel agents to compensate
for the reduction in basic commission. The Commission has no view on the relative merits of direct
purchases of air tickets by consumers and purchase through travel agents.

The Commission shares the Honourable Member(cid:146)s concern that the relationship between some airlines and
travel agents could have serious negative effects on other airlines,
travel agents and ultimately on
consumers. Current actions are designed to ensure that the relevant principles of European law are
respected, protecting against these negative effects.

(1) Commission Decision 1999/1973/EC British Airways, not yet published.

(2000/C 280 E/190)

WRITTEN QUESTION P-0063/00

by Michael Cashman (PSE) to the Commission

(18 January 2000)

Subject: Reduction of VAT on repairs to historic buildings

Could the Commission clarify whether the Directive 1999/85/EC (1), providing for an experimental reduced
rate of VAT for selected labour-intensive services, has in any way affected the Commission(cid:146)s position
regarding the reduction of VAT on repairs to historic buildings?

Could the Commission also clarify the position regarding the reduction of VAT on repairs to historic
buildings?

(1) OJ L 277, 28.10.1999, p. 34.

Answer given by Mr Bolkestein on behalf of the Commission

(17 February 2000)

In principle, current Community legislation does not allow Member States to apply reduced rates of VAT
to services consisting of repairs to historic buildings as such.

Council Directive 1999/85/EC of 22 October 1999 amending Directive 77/388/EEC as regards the
possibility of applying on an experimental basis a reduced VAT rate on labour-intensive services (1) allows
Member States that have submitted an appropriate request to apply reduced rates to labour-intensive
services on an experimental basis from 1 January 2000 to 31 December 2002, on condition, of course,