Commissie peilt meningen over IATA-conferenties vliegtarieven (en)
The European Commission has published a consultation document seeking views on whether the International Air Transport Association (IATA) passenger tariff conferences can continue to be exempted from the EC Treaty's ban on restrictive business practices (Article 81). The Commission began consultations in mid-2004 as the current exemption expires on 30 June 2005. Tariff conferences reduce price competition between airlines but also benefit consumers because they can use one ticket for a journey involving flights on several different airlines (so-called `interlining'). The Commission recognises interlining is a clear benefit for consumers which should be maintained, but wonders whether this could be achieved through less restrictive means than IATA tariff conferences.
Competition Commissioner Neelie Kroes said "Interlining is in principle good for consumers but price fixing is not. We need to safeguard the benefits but get rid of the restrictions. However I want more feedback from the market and from customers before taking a firm view as to how this should be achieved."
A first consultation paper on the future of IATA Article 81exemptions was published on 30 June 2004, eliciting a mixed response. While airlines favour a prolongation of existing exemptions, corporate customers and travel agents do not. Responses to the consultation paper have been published on the Internet.
Airlines within the EU benefit from a block exemption allowing them to discuss prices for scheduled passenger flights, provided these prices are for interlining (Commission Regulation (EEC) No 1617/93). In practice, the block exemption allows IATA to organise tariff conferences where carriers agree on interlining prices. Airlines wishing to participate in the IATA system for interlining can interline with others at the rates set in the conferences.
Tariff Conferences restrict competition and restrictions of competition are in principle negative for consumers. It is unclear whether the economic and consumer benefits of IATA Tariff Conferences compensate fairly consumers for the restriction of competition.
Interlining brings both economic and consumer benefits and is valued by passengers. However, interlining can be done in various ways, including alliances between air carriers and code share agreements. The proliferation of such agreements raises the question of whether the IATA interlining system is necessary given the alternative interlining systems that already exist on intra-EU air journeys. In light of these alternatives, the discussion paper asks whether the IATA interlining system continues to compensate consumers fairly for the restrictions of competition flowing from IATA tariff conferences and whether there are less restrictive means than price fixing that would secure the benefits of interlining.
Interested parties are invited to submit comments before 1 April 2005.
Useful links:
The DG Competition Discussion Paper is available at:
http://europa.eu.int/comm/competition/antitrust/others/discussion_paper_en.pdf
The DG Competition Consultation Paper from 30 June 2004 is available at:
http://europa.eu.int/comm/competition/antitrust/others/consultation_paper_en.pdf
Submissions and responses received following the June 2004 Consultation Paper are available under:
http://europa.eu.int/comm/competition/antitrust/others/1617/contributions.html