Brussels, 02/10/2006 (Agence Europe) - On Monday, the Commission adopted a regulation ending several block exemptions the International Air Transport Association (IATA) has enjoyed for passenger transport since 1993. The exemption enjoyed by tariff conferences on intra-Community routes will be abolished from 1st January 2007. The exemption granted to tariff conferences on routes between the EU and the United States and Australia will continue until 30 June 2007, and on routes between the EU and non-EU countries until 31 October 2007. An extension beyond these dates is possible, but the companies will have to provide additional information justifying renewal of such adjustments to competition rules banning restrictive commercial practices (Article 81 of the EC Treaty). These arguments will have to demonstrate that the IATA interlining system is still of benefit to consumers, said Neelie Kroes in a press release. Finally, the new regulation ends block exemption for IATA slots and scheduling conferences.
Interlining systems allow a passenger travelling with two or more companies to use the same ticket and have his/her luggage transferred automatically without having to register it before each flight. IATA tariff conferences seek to agree tariffs for all the companies for this interlining system. The other existing interlining systems consist of world-wide airline alliances, code sharing agreements and bilateral interlining agreements.
Consultations with the sector and consumers prior to the publication of the new regulation showed that interlining had benefits for consumers. The importance of the IATA interlining system as part of overall interlining in the EU level is, however, relatively small and alternative forms of interlining are possible, says the Commission, which considers that the continuation of the block exemption is not justified considering the risks of restricting competition arising from price agreements.
The IATA interlining system appears more beneficial to consumers on routes to non-EU countries. The Commission, therefore, decided to retain the exemption that IATA conferences enjoy for flights between the EU and the United States and Australia until June 2007, by which date the authorities in those two countries will have decided on exemption schemes in line with their national legislation. The exemption on flights to other non-EU countries will be retained until October 2007.
Block exemption on slots and scheduling are no longer needed, because, in their current form, the conferences are compatible with competition rules, concluded the Commission. This exemption will, therefore, end on 31 December 2006.