June 5, 2017 / 3:13 PM / a year ago

Air France-KLM studying rivals' third-party booking surcharges

CANCUN, Mexico, June 5 (Reuters) - Air France-KLM is assessing its relationships with global distribution systems after rivals introduced surcharges for bookings via third parties, Chief Executive Officer Jean-Marc Janaillac said on Monday.

Deutsche Lufthansa AG introduced a surcharge for such bookings in 2015, and British Airways and Iberia followed last month, knocking down shares of global distribution systems such as Amadeus IT Group SA, Travelport Worldwide Ltd and Sabre Corp.

“We are studying the situation and preparing to be able to take all possible directions,” Janaillac told journalists in a briefing during an annual airline industry meeting in Mexico.

KLM CEO Pieter Elbers said new technology that allows airlines greater control of how fares and products are displayed was changing the landscape.

“This enables us to take different steps and have a different relationship” with global distribution systems, he said, declining to comment on details of contracts with the providers.

Janaillac also reiterated previous comments that the market outlook was positive in terms of long-haul bookings and unit revenues but cautioned that demand was fragile.

He said attacks in Britain had not yet affected demand for Air France-KLM flights, but it could suffer if restrictions on laptops in plane cabins are extended to flights from Europe to the United States.

“It will create major problems in terms of costs and delays,” he said, “and it will also deter traffic and travel from Europe to the United States.” (Reporting by Victoria Bryan; Editing by Lisa Von Ahn)

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