CELEX: 51992PC0404
Language: en
Date: 1993-01-12
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2299/89 on a code of conduct for computerized reservation systems

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)
 ---pagebreak---                                  - 2 -
         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
 ---pagebreak---                                    - 3 -
        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.
 ---pagebreak---                                     - 4 -
    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.
 ---pagebreak---                                           - 5 -
      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.
 ---pagebreak---                                         - 6 -
   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.
 ---pagebreak---                                   - 7
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
 ---pagebreak---                                 - 8 -
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.
 ---pagebreak---                                 - 9 -
     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
 ---pagebreak---                                        - 10 -
    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.
 ---pagebreak---                                    - 11
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.
 ---pagebreak---                                        - 12 -
   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 ) .
 ---pagebreak---                                 - 13 -
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
 ---pagebreak---                                  - 14
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
 ---pagebreak---                                      - 15 -
   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
 ---pagebreak---                                         - 16 -
   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.
 ---pagebreak---                                    - 17 -
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.
 ---pagebreak---                                   - 18 -
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.
 ---pagebreak---                                      - 19 -
   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.
 ---pagebreak---                                    - 20 -
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.
 ---pagebreak---                                    - 21 -
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.
 ---pagebreak---                                    - 22 -
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.
 ---pagebreak---                                       - 23 -
    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.
 ---pagebreak---                                  - 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.
 ---pagebreak---                                      - 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
 ---pagebreak---                                        - 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.
 ---pagebreak---                                    - 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-,
 ---pagebreak---                                     - 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);
 ---pagebreak---                                    - 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;
 ---pagebreak---                                      - 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.
 ---pagebreak---                                       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.
 ---pagebreak---                                     - 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."
 ---pagebreak---                                        - 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.
 ---pagebreak---                                        - 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.
 ---pagebreak---                                     - 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.
 ---pagebreak---                                        - 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.
 ---pagebreak---                                     - 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."
 ---pagebreak---                                   - 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.
 ---pagebreak---                                  - 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
 ---pagebreak---                                      - 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.
 ---pagebreak---                                          - 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."
 ---pagebreak---  ---pagebreak---                                                                      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