In a Notice of Proposed Rulemaking published today, the FAA is seeking comments on whether the rules governing computer reservation system (CRS) operations should be terminated and whether it should also terminate the rules governing the treatment of code-sharing airlines that own, control, or operate a CRS. Currently 14 CFR 255 prohibits discrimination by airlines that own, control or operate a CRS and regulations in 14 CFR 256prohibits unfair and deceptive practices and unfair methods of competition by airlines engaged in code-sharing arrangements.
The FAA now feels that the airline marketplace has changed to such an extent that these regulations are no longer necessary. The growth of internet ticket purchasing and the divestiture by most airlines of their ownership in CRS’s has greatly eliminated the possible anti-competitive conduct these regulations were intended to prohibit.
The FAA is requesting interested persons to provide them with detailed information about the possible consequences of this proposal, including its benefits, costs, and economic and competitive impacts. Comments must be submitted on or before May 4, 2005 and reply comments must be submitted on or before May 19, 2005. You may submit comments using the usual methods.
More information regarding the history of the current regulations and a detailed explanation of the FAA’s analysis supporting removal of the current prohibitions are available in the Notice of Proposed Rulemaking.
