Brussels, 14/12/2001 (Agence Europe) - The European Commission is considering exempting a co-operation agreement between the German company Lufthansa and Austrian Airlines from European competition rules, for a duration of six years. First, the companies will however have to allow their competitors to run certain routs between Germany and Austria so as not to create a quasi monopoly. In December 1999, Austrian Airlines and Lufthansa notified a co-operation agreement to the Commission to secure an exemption to Article 81 (3). This agreement comprised co-ordination of prices and schedules on all their international flights. In May 2001, the Commission sent a statement of complaint to the two partners pointing out that this agreement would lead to the elimination of competition on all the 33 routes between Germany and Austria, and that it could not therefore grant the desired exemption as it stood. The parties reacted positively and made changes to their agreement. They thus undertook to place a share of their new slots at the disposal of new competitors. This provision has already enabled Adria Airways and Air Alps Aviation, two Central and Eastern European carriers, to inaugurate regular flights between Vienna and Frankfurt and between Vienna and Stuttgart. They also agreed to implement on routes for which they are in a situation of monopoly the same reductions they apply to routes also operated by new arrivals. Thy also agreed to allow their rivals to participate in their flight miles programmes and concluded inter-modal agreements with railway companies to offer consumers a greater choice. This agreement is the subject of a publication in the Official Journal C356. Amelia Torres, Commissioner Monti's spokesperson, pointed out that this decision proved that it was quite possible for the Commission to authorise an agreement, even if it creates a position of monopoly, as long as the parties show good will.