Brussels, 29/06/2007 (Agence Europe) - The European Commission has decided not to renew a Block Exemption Regulation that exempts International Air Traffic Association (IATA) passenger tariff 'conferences' concerning air routes between the EU and non-EU countries from the EC Treaty's ban on restrictive business practices (Article 81). Tariff conferences allow airlines to agree prices for multi-leg flights on the same ticket that use more than one carrier. The IATA interlining system is one of four types of interlining systems that exist, the others being global airline alliances, code-share agreements and bilateral interlining agreements.
Block exemption Regulation (EC) 1459/2006 of 28 September 2006 granted exemption from Article 81 but the exemption expires on 30 June 2007 for routes between the EU and the US or Australia, and on 31 October 2007 for routes between the EU and other third countries. The exemption for routes in Europe also expires this year. IATA has not supplied data that would allow the Commission to conclude that an exemption would continue to benefit passengers and the exemption has therefore not been renewed.
IATA was aware of the situation and has worked closely with the European Commission to introduce a computer programme to establish interlining tariffs to replace the tariff conferences among directors of the airlines concerned. IATA Communications Director Anthony Concil said it was a technological solution to do the same job and IATA had long been aware that this would be the next step. He was surprised that the Commission had withdrawn the exemption for routes between the EU and other third countries along with the exemption for routes between the EU and the United States, but this was not important in his view. He explained the new system was now in place and should be up and running shortly without changing all interlining tariffs for passengers.
In a press release, the Commission notes that the new IATA interlining system will not be covered by a block exemption and, 'as is the case for other sectors of the economy, it will be for IATA and individual carriers to ensure that their agreements are compatible with the competition rules'. (cd)