Brussels, 09/02/2001 (Agence Europe) - The European Commission is opening consultation on how appropriate it is to continue to exempt the IATA passenger tariff conferences from European competition rules. The parties have until the month of May to make their position known. In order to continue its consultation, the Commission has already extended until June 2002 the current block exemption system for tariff conferences, that should expire in June this year.
The International Air Traffic Association (IATA) organises tariff conferences several times a year. These conferences fix the interline tariffs used when passengers are carried by a company other than that with which they reserved. Specific conferences fix the price of journeys between European towns.
By exempting the IATA conferences from competition rules, the Commission had felt that these agreements on prices clearly limited competition, but that they are to the advantage of consumers as they make it possible to buy just one ticket for journeys that use several different companies.
The Commission is at present examining how appropriate it is to extend these restrictions beyond the year 2002. Three solutions are on the table, it is stated in a press release: 1) refuse the exemption and compel IATA to put an end to tariff conferences; 2) grant the conferences exemption, either in their current form or subject to certain changes; 3) impose an interline obligation by regulation.
(The Commission's consultation information is available at the following website: http/: http://www.cc.cec : 8082/comm/competition/antitrust/air_transport/interlining/consultation_paper_iata_tariff_conferences.pdf)