The Italian federation of associations of travel and tourism companies, Fiavet-Concommercio, received unqualified support from the Court of Cassation regarding the reduction of Lufthansa’s commission from 1 % to 0.1 % for ticket sales as being illegal. This makes it possible for travel agencies to receive payments.
The Supreme Court of Cassation resolves the debate started by Fiavet- Confcommercio ( Travel agents Federation and Commerce Federation ) in 2016 with a decision that was published on January 16. This argument started after Lufthansa decided to lower the IATA travel agency commission from 1 % to 0.1 %. The Federation, which has always been dedicated to defending the rights of go agents, soon challenged this ruling.
According to Fiavet-Concommercio, the aircraft formally reduced the payment in accordance with the legal requirement governing the revenue relationship with authorized IATA agencies. In comparison to the costs and obligations imposed to maintain the sales relationship ( annual fee, guarantee, training/updating courses, hardware/software implementation ), this reduction was seen as symbolic and uneconomical.
In opposition to the companies ‘ “zero fee” plan, FIAVET filed a lawsuit and won two traditional, positive decisions from the Milan Court and the Court of Appeal, which fully endorsed the claims of the Federation and its affiliated agency Fiavet-Concommercio. For the entire class, Moretti Viaggi of Milan played a major part in this argument.
When Lufthansa appealed the Court of Cassation’s ruling to overturn it on January 16, the situation came to a conclusion.
The Supreme Court denied Lufthansa’s appeal, ruled that all three censorship grounds were illegal, and agreed with Fiavet-Concommercio in his counter-appearance.
The assessments of the first and second occasion courts in Milan, which declared the legal section in post 9 of PSAA/IATA null and void, are still in effect, according to attorney Federico Lucarelli, speaking on behalf of Fiavet. More than 200 IATA carriers are subject to this article’s rules regarding the sales partnership between go agencies, with the section allowing carriers to change the commission rate without restriction.
According to Lucarelli, the practical outcome is that travel agents have the right to ask Lufthansa for the payment of the higher commission that has n’t been paid since January 1, 2016, based on court rulings obtained by Fiavet-Concommercio. Prior to Lufthansa’s illicit lowering on June 3, 2015, there was a distinction between 0.1 % and 1 %.
Fiavet- Confcommercio President Giuseppe Ciminnisi referred to it as a historical day because it marked the end of an eight-year legal battle and the fulfillment of their commitment to their members. He emphasized the significance of the Cassation’s choice as a springboard for reevaluating the IATA ticket sales partnership and called for an approach between travel agencies and carriers that is more adaptable and cooperative. Instead of using constitutional means, Cinnisi expressed the hope that this choice may encourage discussion and cooperation.
SOURCE: Travel and Tourism Organizations ‘ last appeal with Lufthansa is denied by the Italian court, according to eTurboNews.eTN
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