The Fair Trade Commission recommends correcting the agency contract with the International Air Transport Association
In the future, airlines will no longer be able to unilaterally determine the fees to be paid to travel agencies.
The Fair Trade Commission announced on the 20th that it has reviewed the ‘agent contract’ signed by travel agencies with IATA to represent the international air passenger sales of IATA member airlines and recommended corrections to some unfair terms and conditions.
More than 290 airlines around the world, including Korean Air, are members of IATA.
According to the FTC investigation results, the existing contract stipulates that IATA member airlines using the BSP system (integrated settlement system for ticket sales) can unilaterally determine all fees or other remuneration paid to travel agencies.
However, the Fair Trade Commission pointed out that the provision violated the Terms and Conditions Act, saying that the fees and other remuneration are payments that travel agencies receive for selling air tickets on behalf of airlines, so they must be decided through consultation between the two parties.
It was also recommended that the provisions stipulating that the amendments to the contract have the same effect as those signed by the travel agency and the provisions stipulating that the travel agency agrees to abide by the contract shall be deemed to be included in the contract, which is amended from time to time.
In June of last year, the Fair Trade Commission launched an investigation after receiving a report from the Korea Travel Association that many airlines unilaterally abolished the ticketing agency fees of travel agencies due to such unfair provisions and that the entire travel agency industry was in crisis.
The Fair Trade Commission plans to complete negotiations with IATA to rectify the terms and conditions within 60 days of recommending a correction.
If the IATA does not follow the corrective recommendations without justifiable reasons, it will also review corrective orders.
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