Economic Policy Section (ECP)
Code of Conduct on the Regulation
and Operation of Computer Reservation Systems (CRS)
Introduction
The Council of ICAO recognizes that computer reservation systems (CRSs) provide
substantial benefits both to the air transport industry and to air transport
users. However, such systems can also be used in abusive ways. To promote desirable
practices and avoid harmful ones in the distribution of air carrier products
through CRSs, the Council, on 17 December 1991, adopted the ICAO CRS Code of
Conduct and urged States to follow it.
The Council undertook to review the Code in the light of experience. In the
course of that review the Council has taken into account application of the
Code by ICAO Contracting States, the need to strengthen the effectiveness of
the Code, the implications of the General Agreement on Trade in Services (GATS)
which includes computer reservation systems, the conclusions on CRSs of the
Worldwide Air Transport Conference, and a revised resolution on CRSs (A31-13)
adopted by the 31st Session of the ICAO Assembly. Concluding that a more formal
system with worldwide applicability and use was warranted, the Council on 25
June 1996 adopted this revised Code to replace the existing Code in its entirety,
effective 1 November 1996.
The Code necessitates no formal process of ratification, but each Contracting
State that decides to follow it is expected to inform ICAO of its decision.
The Code does not supplant or obviate individual or collective State regulation
of CRS operations, nor does it imply that any particular means of regulation
must be employed. A State may choose to employ the Code itself as a regulatory
instrument; develop national CRS regulations based upon the Code; modify existing
national regulations if necessary for consistency with the Code; employ the
provisions of existing trade or competition legislation where relevant; require
or encourage self-policing arrangements by CRS vendors, air carriers and subscribers;
apply it in its bilateral or multilateral relations with other States through
use of the appropriate ICAO Model CRS Clause, or use any combination of these
and similar means.
Article 1 of the Code describes its purpose and objectives, Article 2 establishes
a relevant terminology, while Article 3 defines the Code's scope of application.
These are followed by articles defining certain obligations of States (Article
4), of CRS vendors (Articles 5 through 8), of air carriers (Article 9) and of
subscribers to CRS services (Article 10). Article 11 deals with safeguarding
the privacy of personal data while Article 12 concerns application, revisions
and exceptions to certain provisions. The Code covers a rapidly changing field,
since CRS activities are driven by fast-moving technological, regulatory and
commercial developments. Consequently, Article 12 provides for the Council to
revise the Code when circumstances warrant.
The text of the Code is followed by complementary notes
on the application of each Article. These notes explain the purpose and intent
of the Articles and identify relevant factors to be taken into account when
applying the Code.
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This Code is based on
transparency, accessibility and non-discrimination, and aims at enhancing
fair competition among airlines and among computer reservation systems
(CRSs) and at affording international air transport users access to the
widest possible choice of options in order to meet their needs. To this
end, the Code takes into account current market practices, the particular
interests of developing countries, and the critical need for harmonization
of the various national and regional CRS regulations.
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In this Code:
- a) "Computer reservation system
(CRS)" means a computer system that provides displays of schedules,
space availability and tariffs of air carriers, and through which
reservations on air transport services can be made;
- b) "System vendor" means an entity
that operates or markets a CRS;
- c) "Participating carrier" means
an air carrier that uses one or more CRSs to distribute its air transport
services, either as the system vendor or as a result of an agreement
with the system vendor; and
- d) "Subscriber" means an entity
such as a travel agent that uses a CRS under contract with a system
vendor for the sale of air transport services to the general public
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Article 3 — Scope of Application
- a) This Code shall apply to the
distribution of international passenger air service products through
CRSs. Where a State determines it is necessary to meet the purpose
of the Code in Article 1, it shall also apply to computer information
systems which provide displays of schedules, space availability and
tariffs of air carriers, without the capability of making reservations.
- b) Where non-scheduled flights are
included in principal displays they shall be identified as such, displayed
under the same conditions as scheduled services and air transport
users shall be informed of any special conditions applying.
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Article 4 — Obligations of States
A State that follows this
Code shall:
- a) ensure compliance with this Code
by air carriers, subscribers (where practicable) and system vendors
for their CRS activities in its territory;
- b) remove regulatory obstacles,
if any, to investment in CRSs domiciled in its territory by air carriers
or other entities domiciled in the territory of another State which
follows this Code;
- c) allow system vendors which comply
with this Code to provide their CRS services in its territory on a
non-discriminatory basis and consistent with any bilateral or multilateral
agreements or arrangements to which the State is a party;
- d) treat all system vendors impartially
regarding their CRS activities in its territory;
- e) permit the free flow across and
within its national borders of the information needed to meet the
reservation and related requirements of air transport users;
- f) use intergovernmental consultation
processes to resolve any dispute involving another State following
this Code, regarding the distribution of air transport products through
CRSs, that cannot be resolved satisfactorily by the parties immediately
concerned; and
- g) not allow or require air carriers or system vendors
under its jurisdiction to take actions not in conformity with this
Code, except to address, in an appropriate and proportionate manner,
a lack of CRS reciprocity or the consequences of a failure of intergovernmental
consultation processes to resolve any CRS dispute.
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Article 5 — Obligations of System Vendors to
Air Carriers
A system vendor shall:
- a) permit participation in its
CRS by any carrier prepared to pay the requisite fees and to accept
the system vendor's standard conditions;
- b) not require carriers to participate
in its CRS exclusively or for a certain proportion of their activities;
- c) not impose any conditions on
participation in its CRS that are not directly related to the process
of distributing a carrier's air transport products through the CRS;
- d) not discriminate among participating
carriers in the CRS services it offers, including timely and nondiscriminatory
access to service enhancements, subject to technical or other constraints
outside the control of the system vendor;
- e) ensure that any fees it charges
are:
- i) nondiscriminatory;
- ii) not structured in such a
way that small carriers are unfairly precluded from participation;
and
- iii) 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.
- f) provide information on billing
for the services of a system in a form (including, if requested, via
or on electronic media) and in sufficient detail to allow participating
carriers to verify promptly the accuracy of the bills;
- g) include in contracts a provision
permitting an air carrier to terminate a contract by giving notice:
- i) which need not exceed six months,
to expire not before the end of the first year, or
- ii) as prescribed by national
law.
- h) load information provided by
participating carriers with consistent and nondiscriminatory standards
of care, accuracy and timeliness, subject to any constraints imposed
by the loading method selected by the participating carrier;
- i) not manipulate the information
provided by carriers in any way that would lead to information being
displayed in an inaccurate or discriminatory manner;
- j) make any information in its CRS
directly concerning a single reservation available on an equal basis
to the subscriber concerned and to all the carriers involved in the
service covered by the reservation but to no other parties without
the written consent of such carriers and the air transport user; and
- k) not discriminate among participating
carriers in making available any information, other than financial
information relating to the CRS itself, generated by its CRS in an
aggregated or anonymous form.
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Article 6 — Obligations of System Vendors to
Subscribers Regarding Commercial Arrangements
A system vendor shall
not:
- a) discriminate among subscribers
in the CRS services it offers;
- b) restrict access by subscribers
to other CRSs by requiring them to use its CRS exclusively or by any
other means;
- c) charge prices conditioned in
whole or in part on the identity of carriers whose air transport services
are sold by the subscriber;
- d) require subscribers to use its
CRS for sales of air transport services provided by any particular
carrier;
- e) tie any commercial arrangements
regarding the sale of air transport services provided by any particular
carrier to the subscriber's selection or use of the system vendor's
CRS;
- f) require subscribers to use its
terminal equipment or prevent them from using computer hardware or
software that enables them to switch from the use of one CRS to another,
although it may require technical compatibility with its CRS; and
- g) require subscribers to enter
into contracts which:
- i) exceed five years; or
- ii) cannot be cancelled by the subscriber at any
time after one year, with notice and without prejudice to recovery
of actual costs; and
- iii) contain provisions that undermine contract
termination
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Article 7 — Obligations of System
Vendors Regarding Displays
A system vendor shall:
- a) make available a principal display
or displays of schedules, space availability and tariffs of air carriers
which is fair, nondiscriminatory, comprehensive, and neutral in terms
of :
- i) not being influenced, directly
or indirectly, either by the identity of participating carriers
or by airport identity; and
- ii) with the information ordered
in a manner which is consistently applied to all participating carriers
and to all city-pair markets;
- b) ensure that any principal display
made available is as fully functional and at least as easy to use
as any other display it offers;
- c) always provide a principal display
except where there is a specific request from an air transport user
which requires the use of another display;
- d) base the ordering of services
in a principal display and the selection and construction of connecting
services on objective criteria (such as departure/arrival times, total
elapsed time between initial flight departure at origin and final
flight arrival at destination, routing, number of stops, number of
connexions, fares, etc.);
- e) provide to subscribers:
- i) a principal display of flight
options ranked in the order of all non-stop flights by departure
time, other direct flights not involving a change of aircraft and
all connecting flights by elapsed journey time; or
- ii) a principal display of flight
options ranked in any other order based on objective criteria; or
- iii) principal displays based
on i) and ii);
- f) in the ordering of services in
a principal display, take care that no carrier obtains an unfair advantage;
- g) in any principal display of schedule
information:
- i) clearly identify nonscheduled flights, scheduled
en-route changes of equipment, use of the designator code of one
air carrier by another air carrier, the name of the operator of
each flight, the number of scheduled en-route stops, and any surface
sectors or changes of airport required; and
- ii) clearly indicate that the information displayed
regarding direct services is not comprehensive, if information on
participating carriers' direct services is incomplete for technical
reasons or if any direct services operated by non-participating
carriers are known to exist and are omitted;
- h) in the selection and construction of connecting
services in a principal display, select as many alternative (single
or multiple) connecting points on a nondiscriminatory basis as is
necessary to ensure a wide range of options;
- i) not intentionally or negligently display inaccurate
or misleading information;
- j) in cases where States do not find it practicable
to ensure that subscribers comply with Article 10, include appropriate
provisions regarding compliance in its contract with each subscriber;
and
- k) where participating carriers have joint venture
or other contractual arrangements requiring two or more of them to
assume separate responsibility for the offer and sale of air transport
products on a flight or combination of flights, permit each carrier
concerned up to a maximum of three to have a separate display using
its individual designator code.
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Article 8 — Other Obligations of System Vendors
A system vendor shall:
- a) make available in written form
and in a timely manner, on the written request of any interested party,
information on the services offered by its CRS, the associated fees,
the procedures it applies for entering and storing information in
its CRS, and the methods it uses for developing, editing and updating
information displays provided to subscribers; and
- b) refrain from practices which
inhibit or impair competition among system vendors or air carriers.
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Article 9 — Obligations of Air Carriers
An air carrier shall:
- a) be responsible for the accuracy
of information it provides to a system vendor for inclusion in a CRS;
- b) in providing information on its
air transport services to system vendors:
- i) ensure that it does not misrepresent
services; and
- ii) clearly identify nonscheduled
flights, scheduled en-route changes of equipment, use of the designator
code of one air carrier by another air carrier, the name of the
operator of each flight, the number of scheduled en-route stops
and any surface sectors or changes of airport required;
- c) not refuse, except where legitimate
commercial or technical reasons exist, to participate in any CRS used
by subscribers in a State where the carrier holds a dominant market
position, if it is financially linked or otherwise affiliated with
any other CRS (other than as a result of a participation agreement
with the system vendor);
- d) not refuse, except where permitted
by law, to provide information on schedules or tariffs to a system
vendor whose CRS is used by subscribers in the carrier's State of
domicile, if it already provides such information to another system
vendor whose CRS is used by subscribers in that State; and
- e) not require subscribers to use
a particular CRS for sales of its air transport services, nor tie
any commercial arrangements with subscribers regarding the sale of
its air transport services to the subscriber's selection or use of
a particular CRS where:
- i) the air carrier has a financial
interest or is otherwise affiliated with that CRS, or
- ii) this would unfairly favour
that CRS.
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Article 10 — Obligations of Subscribers
A subscriber shall:
- a) use or provide a principal display
meeting the requirements of Article 7 for each transaction, except
where a preference indicated by an air transport user requires the
use of another display;
- b) not manipulate information supplied
by a CRS in a manner that would result in inaccurate or misleading
information being given to an air transport user;
- c) be responsible for the accuracy
of any information it enters into a CRS;
- d) where nonscheduled flights are
included in a CRS, inform an air transport user if a flight is nonscheduled
and of any special requirements concerning it;
- e) inform air transport users of
all scheduled en-route changes of equipment, use of the designator
code of one air carrier by another air carrier, the number of scheduled
en-route stops, the name of the operator of each flight, and any surface
sectors or changes of airport required in any itinerary provided;
and
- f) not make fictitious reservations
through a CRS.
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Article 11— Safeguarding the Privacy of Personal
Data
- a) States shall take appropriate
measures to ensure that all parties involved in CRS operations safeguard
the privacy of personal data.
- b) Air carriers, system vendors,
subscribers and other parties involved in air transportation are responsible
for safeguarding the privacy of personal data included in CRSs to
which they have access, and may not release such data without the
consent of the passenger.
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Article 12 — Application, Revision
and Exceptions
- a) This Code shall be applicable
with effect from 1 November 1996. It may be revised by the Council
when it deems that circumstances warrant, and any revised Code shall
supersede its predecessor in its entirety.
- b) A State which commits itself
to follow the Code shall do so by notifying ICAO. A State which decides
to discontinue such commitment shall do so by notifying ICAO. c) A
State which is recognized by the United Nations as a developing country
and which has notified ICAO that it follows the Code may, until 31
December 2000, decline to follow Article 4 c) provided:
- i) it notifies ICAO of such action;
and
- ii) such action is consistent
with any bilateral or multilateral agreement or arrangement to which
the State is a party.
- d) Any State which has notified
ICAO of its commitment to follow the Code and which allows or requires
actions not in conformity with the Code in accordance with Article
4 g) shall notify ICAO of such actions.
- e) The Council will periodically
advise all States of notifications made pursuant to clauses b) through
d) above.
- f) Multi-access CRSs are exempt
from compliance with clauses h) through k) of Article 5 and clauses
a) through h) and k) of Article 7.
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