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Image header Agence Europe
Europe Daily Bulletin No. 8074
Contents Publication in full By article 22 / 29
GENERAL NEWS / (eu) eu/competition

Commission welcomes IATA measures on air freight transport

Brussels, 19/10/2001 (Agence Europe) - Following European Commission objections, the International Air Transport Association (IATA) has agreed to rescind all resolutions involving the joint setting of rates for the air transport of freight within the EEA which will translate into greater competition to the benefit of European exporters. Until June 1997, the activities of the IATA tariff conferences for freight shipment within the EEA were block-exempted, but following the withdrawal of the block exemption, IATA applied for an individual exemption, arguing that conference tariffs facilitated cargo interlining for air freight (interlining is when cargo is carried for part of the journey by a different airline from the one that sold the ticket, Ed). On May 15 2001, however, the Commission sent IATA a statement of objections signalling that the IATA had failed to demonstrate that the 55 year-old restrictive system was still necessary to provide customers with efficient interlining services and that it did not hinder price competition. As a result, IATA has agreed to end the joint setting of cargo rates from the beginning of 2002, when rates will be fixed individually by each carrier.

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