Thu, Jul 06, 2006
Would Open Transatlantic Routes To Greater
Competition
In what the US
Department of Transportation calls an effort to enhance competition
and provide lower fares for consumers flying internationally, on
Wednesday the agency proposed to withdraw antitrust immunity from
the tariff-coordination meetings held by the International Air
Transport Association (IATA) that discuss and set passenger fares
and cargo rates for US-Europe and US-Australia flights.
In its show-cause order, the Department tentatively concluded
that changes in international aviation services -- such as the
growth of international airline alliances -- have made the pricing
conferences unnecessary. The Department also tentatively found that
airlines can establish fares without IATA conferences, and that
international alliances have made it even easier for passengers to
make trips using more than one carrier without IATA’s
involvement.
The Department also noted that European Union and Australian
competition authorities have tentatively determined to end or
reduce the IATA conferences’ immunity from their own
competition laws.
DOT has the authority under law to approve agreements involving
international air transportation and to grant them antitrust
immunity. In addition to the IATA conferences, DOT has also granted
antitrust immunity to a number of alliances between US and foreign
airlines.
Conferences on fares
between the United States and other parts of the world would not be
affected by this proposed action.
Representatives with the DOT told Aero-News that interested parties
may file objections within the next 45 days to the DOT’s
tentative decision. The Department intends to make its final
decision by the end of this year. Conferences on fares between the
United States and other parts of the world would not be affected by
this proposed action.
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