DOT Fines Amadeus $95,000 for Failing to Display Codeshares

DOT Fines Amadeus $95,000 for Failing to Display Codeshares
By Kate Rice

The U.S. Department of Transportation has fined Amadeus $95,000 because the software it provided to travel agencies did not tell consumers when flights were being operated under a codesharing agreement. Amadeus is the first GDS to be fined by DOT.

“When passengers buy an airline ticket, they have a right to know which airline will be operating their flight,” said U.S. Transportation Secretary Ray LaHood.  “We expect all companies that sell or facilitate the sale of air transportation -- airlines, travel agents and global distribution systems alike -- to comply with the laws we enforce.”

DOT said that many travel agencies did not properly install add-on software from Amadeus that would enable them to disclose codeshared flights. Since many travel agencies are small businesses with limited resources to apply to technical matters, DOT said, Amadeus was responsible for making sure that agents installed that software properly and knew that if it weren’t properly installed, codeshare information would not display.

Under a new law, when tickets are purchased on the Internet, codeshare information must be easily viewable on the first display of a website following a search for flights corresponding to a desired itinerary. The department sent a notice to airlines and ticket agents in January reminding them of the new codeshare disclosure requirements.

As a GDS, Amadeus provides online travel agents with flight schedule and fare information for reservations and ticket sales and is subject to DOT’s requirements for ticket agents.

Amadeus, however, said it had not violated the DOT regulation. “We believe Amadeus properly facilitated compliance for our online travel agency customers with respect to displaying codeshare information and acted responsibly at all times,” the company said in a statement. “Amadeus is fully aware of our responsibilities to our agency customers. That is why we made all necessary information available to our online travel agency customers and their third-party website developers regarding the functionalities that the Amadeus System has to offer, including related to the full display of codeshare information.”

Amadeus said that when agents called for help with codeshare issues, it promptly took steps to provide them with the technical advice and instructions they needed. “We have also taken the necessary steps to provide Amadeus online travel agencies with the information and tools they need to comply with the codeshare display regulations,” the statement said.

Amadeus also said that it is important to note that this matter relates to a modest number of Amadeus online agencies in the U.S. Earlier this year, some online travel agencies had consent orders issued against them by DOT for violations of codeshare disclosure rules, but not all of them were Amadeus customers, and some were multi-GDS users.

Amadeus said it will continue to work closely with its online travel agency customers to assist them in complying with these and other regulations affecting how they conduct business.

Amadeus will comply with the DOT order, the company said, saying that it chose to enter into the proposed consent order rather than face the possibility of lengthy and expensive litigation over the matter, which could have resulted if the order had not been agreed to by both parties.