Brussels, 16/11/2005 (Agence Europe) - On Wednesday, the European Commission presented for consultation a draft Block Exemption Regulation revising the exemption International Air Transport Association (IATA) passenger tariff conferences currently enjoy from the EC Treaty's ban on restrictive business practices (Article 81). The draft Regulation proposes to discontinue the exemption for tariff conferences for routes within the EU as of 1 January 2007, with a transitional period until 31 December 2006 to allow IATA time to work on alternative arrangements. For tariff conferences on routes between the EU and non-EU countries, the draft Regulation proposes an exemption until 30 June 2008, provided that participating airlines provide the Commission with data to allow a detailed review of the situation in 2008. The Commission will now consult Member States and give interested parties a further opportunity to make their views known, before deciding on the final form of the Block Exemption in 2006. Competition Commissioner Neelie Kroes said “IATA passenger tariff conferences appear to facilitate interlining on routes to third countries, but I do not have sufficient assurances that these conferences will continue to benefit passengers who interline on journeys within the EU. Therefore, I am proposing to phase out the immunity from EU competition rules for routes within the EU. I am committed to continuing the dialogue with IATA with a view to developing alternative systems for multilateral interlining.” Since 1993, the Commission has block exempted tariff conferences and slots and scheduling conferences organised under the auspices of the International Air Transport Association (IATA), the trade association representing some 265 airlines worldwide. Interlining occurs when a passenger flies using just one ticket with two or more carriers. Interlining allows consumers to combine the services of different airlines and makes multi-carrier journeys seamless: at a transit airport, passengers do not have to collect their luggage and check in again and their baggage will automatically follow through to their final destination. Interlining benefits consumers, but that the importance of IATA interlining as part of overall interlining in the EU is relatively small, and that there are several alternative forms of interlining. As a result, there is insufficient assurance for routes within the EU that the benefits to consumers will continue to outweigh the risks of the restriction of competition arising from the prices being agreed within the IATA conferences. The consultations showed however that on routes between the EU and third countries interlining is appreciably more important. On these routes there is sufficient assurance that the benefits of IATA interlining outweigh the disadvantages of the restriction of competition, notes the Commission, which is therefore not planning to further prolong the block exemption for slots and scheduling.