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Air France KLM propels agents off GDS

15 Nov 2017 - by Tessa Reed
Comments | 0

COME April 1 next year, Air

France KLM will introduce a

GDS charge of €11 (R180) per

one way on GDS sales. This

means that for a round trip (for

example JNB-CDG-NYC-CDGJNB),

the surcharge applies

twice. Groups will be exempted

from the charge.

Air France KLM is the

latest airline to introduce the

surcharge, following similar

moves by Lufthansa, British

Airways and Iberia.

The airline said in a memo

to agents that the surcharge

would cover the cost difference

between the GDS model and

the corresponding costs of

Air France and KLM direct

sales and is subject to change

in the future. The airline

said the current GDS model

represented higher costs than

other options and came with

more constraints.

The surcharge will not

apply to sales via an NDC

API connection (available in

January 2018), the Air France

KLM Agent Booking Tool

(deployed from April 1, 2018)

or to Air France and KLM direct

sales channels.

But while Air France KLM

is applying a surcharge to

bookings on the GDS, a recent

deal struck between IAG

(International Airlines Group),

which owns British Airways and

Iberia, has seen Flight Centre

Travel Group, Amex and HRG

exempted from the surcharge

when booking on Amadeus.

This scenario suggests it’s

not implausible that similar

deals could be struck between

other airlines and agents,

allowing them to bypass these

surcharges. Asked if a similar

deal was in the pipeline for

Air France KLM bookings on

Amadeus, a spokesperson

said: “We will engage with

AF KLM to find a sustainable,

long-term agreement that suits

all players across the travel

industry. We cannot comment

on specific details beyond that

at this stage.”

Andrew Stark, md of Flight 

Centre Travel Group Africa,

suggested that the group would

not look for a similar deal with

Air France KLM from a local

perspective, although he didn’t

rule it out for the group’s other

territories. “One thing we know

about Air France KLM in the

South African market is that

they have a strong appetite to

deal direct and they don’t

have a strong relationship with

the retail trade.”

An official Sabre statement

reads: “It is disappointing

to see AF KLM introduce a

surcharge that will impose

costs and inconvenience for

using the GDS channel. We will

be discussing options with the

airline. As always, our driving

goal is to provide a balanced

solution that meets the needs

of airlines, agencies and

consumers.” 

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