No C 108/8 Official Journal of the European Communities 1. 5. 90 
Notice pursuant to Article 5 (2) of Council Regulation (EEC) No 3975/87 (') of 14 December 
1987 concerning case IV/33.324 — joint venture agreement between Aer Lingus and Lufthansa 
relating to all-cargo services on the routes Dublin/Manchester and Birmingham/Frankfurt 
(90/C 108/04) 
I. The application 
On 21 August 1989, Aer Lingus, Dublin Airport, Ireland 
made an application pursuant to Article 5 of Council 
Regulation (EEC) No 3975/87 for a decision applying 
Article 85 (3) of the EEC Treaty to its joint venture 
agreement with Deutsche Lufthansa Aktiengesellschaft, 
Von GablenzstraSe 2-6, 5000 Koln 21, Federal Republic 
of Germany, relating to the operation of all-cargo 
services on the routes Dublin/Manchester and 
Birmingham/Frankfurt. 
II. The provisions of the agreement 
1. Origin and duration 
The agreement has been effective since 14 February 1989 
for an indefinite period, subject to one of the parties 
giving not less than 30 days notice of termination. 
2. Operation of flights 
The parties agree a programme six months in advance 
for a one year period, taking into account elements such 
as economic viability, days of operation, type of aircraft 
etc. 
During the period 14 February 1989 to 28 October 1989 
the parties had agreed to operate jointly five weekly 
all-cargo flights between Dublin and Manchester using 
Aer Lingus aircraft and five weekly flights between 
Birmingham and Frankfurt using Lufthansa aircraft. 
The party responsible for operating the flights provides 
the necessary aircraft and crews and is also charged for 
the costs of aircraft handling activities at all stations 
served by the agreed services. 
3. Programmes and schedules 
Each party publishes the agreed joint programme under 
the flight numbers and under the common prefix of both 
parties. Each party puts its own prefix first followed by 
that of the other. The agreed programme is published in 
the working, general and regional timetables of both 
parties. 4. Commercial cooperation 
All information and advertising material produced with 
the aim of promoting the joint services is made in a 
non-discriminatory way. In order to coordinate adver­
tising and sales promotion there is free and frequent 
exchange of information between the parties. 
Each party has the right to offer for sale and to make 
use of an equal part of the total weight/volume capacity 
offered by the programme. 
The agreement does not prevent the parties from estab­
lishing their rates independently and from offering 
supplementary capacity. 
5. Cost and revenue sharing 
Operating costs are agreed between the parties and, for 
the period 14 February 1989 to 28 October 1989, were 
shared equally. The operating party invoices the other 
party through IATA Clearing House in the month 
following each month of operation for its share of the 
operating costs. 
All revenues derived from the load carried on the flights 
covered by the agreement are shared equally between the 
parties. The freight revenue is calculated on the basis of 
revenue units agreed between the parties. Within 60 days 
of the end of each month, each party sends to the other 
a statement of the traffic carried separately for each 
flight and of the corresponding revenue to be paid. 
The parties alternate responsibility for the administration 
of the agreement, each partner taking charge for two 
consecutive IATA traffic periods. After the end of each 
settlement period, which corresponds to an IATA 
summer or winter traffic period, and within 45 days of 
receipt of the last monthly statement, the party carrying 
out the administration sends to the other party: 
(i) an apportionment of the revenue earned; 
(ii) a balance showing: 
(a) the costs borne by each party, 
(b) the revenue earned by each party, 
(c) payments made. 
C) OJ No L 374, 31. 12. 1987, p. 1. The party to whom payment is due will then debit the 
other party accordingly. 
1.5.90 Official Journal of the European Communities No C 108/9 
6. Size of the routes 
Aer Lingus operates another all-cargo service on the 
Dublin-Manchester route separate from the joint service. 
Less than 7 000 tonnes were carried in 1988/1989. In 
addition to these cargo-only operations, there are limited 
air cargo services on mixed passenger/cargo aircraft by 
Aer Lingus, British Airways and TAP. There are also a 
number of so-called 'integrated carriers' (i.e. door-
to-door carriers) operating regular cargo-only services. 
No service existed on the Birmingham-Frankfurt route 
previously and since the joint service was introduced less 
than 2 000 tonnes have been carried. Next to the joint 
operation there are limited air cargo services on mixed 
passenger/cargo aircraft by Lufthansa, Birmingham 
European Airways and British Airways. In addition other 
carriers offer connecting services. 
III. Arguments of the Parties 
The parties consider that the agreement should benefit 
from an exemption pursuant to Article 85 (3) for the 
following reasons: 
— the arrangement contributes to improved distribution 
of goods in the markets in which it operates, 
— consumers benefit from increased frequency on one 
route and a new service on the other. The increased 
competition represented by this will help keep cargo 
rates in the markets concerned down, — on the Dublin-Manchester route Lufthansa has traffic 
rights which it is unable to exploit economically on 
its own, 
— no other carrier has been prepared to operate direct 
all-cargo services on the Birmingham-Frankfurt route 
because of its poor economics, 
— revenue sharing is necessary to compensate each 
party for the effort involved in sharing the financial 
risk and for its marketing activities. Cooperation in 
selling activities and in providing technical support 
increases the total market. 
This Notice is published pursuant to the procedure 
established by Article 5 of Council Regulation (EEC) No 
3975/87, the Commission having determined prima facie 
that the agreement in question meets the test of Article 
85 (1) of the Treaty. The Commission has not at this 
stage formed any view on the applicability of Article 85 
(3) of the Treaty to the agreement. 
The Commission invites all interested third parties and 
Member States to submit any comments they may have 
within 30 days of the date of publication of this Notice, 
quoting reference rW33.324, to the following address: 
Commission of the European Communities, 
Directorate-General for Competition, 
Directorate D, 
Rue de la Loi, 200, 
B-1049 Brussels.