WRITTEN QUESTION E-3759/00

by Gilles Savary (PSE) to the Commission

(4 December 2000)

Subject: Commission's position on IATA tariff consultations

The system operated by IATA for tariff consultations (on passenger fares and freight shipment rates) is an essential element in its inter-line arrangements, enabling air transport worldwide to operate on a coordinated and integrated basis, with long-recognised benefits to the consumer. This system has always been supported by both the Member States and the Commission; the latter has taken the view that the practices concerned are eligible for classification as group exemptions to the application of Article 81(1) of the EC Treaty, pursuant to the provisions of Article 81(3).

Despite the above, under Regulation (EEC) 1617/93 as amended by Regulation (EEC) 1523/96(1) and Regulation (EEC) 1083/1999(2), this group exemption is now limited to consultations on passenger fares alone. In 1997 IATA deposited a request with the Commission for an individual exemption for consultations on freight shipment rates, but it has to date received no reply.

What are the Commission's intentions concerning renewal of the group exemption for consultations on passenger fares? Do these intentions reflect the positions of the industry, consumers and Member States?

What are the reasons for the Commission's failure to date to rule on the request for an individual exemption for consultations on freight shipment rates, given that it was deposited more than three years ago? What are the Commission's intentions in this respect?

(1) OJ L 190, 31.7.1996, p. 11.

(2) OJ L 131, 27.5.1999, p. 27.

Answer given by Mr Monti on behalf of the Commission

(5 February 2001)

The system of the International air transport associations (IATA) tariff consultations was set up after World War Two at a time when competition in air transport was very limited. The air transport market is now very different, with liberalisation in the Community, the United States and elsewhere leading to effective competition on many routes.

The Commission is currently considering whether to exempt the IATA passenger tariff consultations under Article 81(3) for a further period and if so under what conditions. DG Competition will be publishing a consultation paper within the next few weeks seeking the views of industry, consumers and other interested parties on the usefulness of the IATA passenger tariff consultations in a competitive air transport market and on possible alternatives to them.

The Commission confirms that IATA applied for an individual exemption for the cargo tariff consultations in 1997 and that they are therefore protected from fines for these arrangements. When the Commission withdrew the block exemption for the cargo consultations in 1996 the reasons given were that the consultations were no longer necessary to enable interlining and that they resulted in high tariffs being set at the expense of users.

The Commission is currently examining IATA's request for an individual exemption. This is a complex case and fact-finding has taken some time. The facts presented so far have not been sufficient for the Commission to grant an individual exemption. A final decision on this matter will be taken in the first half of 2001.