Notice pursuant to Article 16(3) of Regulation (EEC) No 3975/87 of 14 December 1987 concerning case COMP/A.38.284/D2 — Société Air France/Alitalia Linee Italiane SpA
Date: 2003-12-09
Institutions: European Commission
Subjects: France, Italy, air transport, airline, competition law, cooperation agreement, transport company

C 297/10

EN

Official Journal of the European Union

9.12.2003

Notice pursuant to Article 16(3) of Regulation (EEC) No 3975/87 of 14 December 1987 concerning
case COMP/A.38.284/D2

Société Air France/Alitalia Linee Italiane SpA

(2003/C 297/04)

I. STATE OF THE PROCEDURE

On 13 November 2001, Alitalia and Air France notified
1.
to the Commission a co-operation agreement and applied for
negative clearance under Article 3(2) or exemption under
Article 5 of Council Regulation (EEC) No 3975/87 (1).

According to Article 5(2) of Regulation (EEC) No
2.
3975/87,
the
the Commission published a summary of
application in the Official Journal of the European Communities
on 8 May 2002 (2). The notice also summarised the reasons
given by the parties for granting an exemption under Article
81(3).

the Commitments

set out below to resolve

offer
the
competition concerns identified by the European Commission
in the course of proceedings in Case COMP/38.284 concerning
the cooperation agreement between the Parties in particular in
relation to air transport on certain routes between France and
Italy.

1. General and Definitions

These Commitments shall be annexed to and form an

8.
integral part of the Commission's exemption decision.

3.
On 1 July 2002, the Commission informed the Parties
that, in respect to Article 5(3) of Regulation (EEC) 3975/87, it
has serious doubts with regard to the applicability of Article
81(3) of the Treaty.

9.
These Commitments shall be binding on the Parties, their
subsidiaries, successors and assigns and the Parties commit to
cause their subsidiaries, successors and assigns to comply with
these Commitments.

Overall,

4.
the alliance
the Commission recognises that
agreement contributes to technical and economic progress,
given the improvements in connectivity and the cost savings
and synergies achieved by the parties. However, the agreement
raises competition concerns on key routes between France and
Italy (Paris–Rome, Paris–Milan, Paris–Venice, Paris–Florence,
Paris–Bologna, Paris–Naples, and Milan–Lyon).

Consequently,

the Commission services entered into
5.
discussions with the parties with a view to finding appropriate
and effective remedies to these concerns.
In order to be
effective, such remedies should remove existing entry barriers
for competitors and thus favour the emergence of competing
services on the routes concerned,
failing which passengers
would have little or no choice and potentially higher prices.

As a result of

these discussions,

the parties have
6.
submitted proposed commitments which are set out in what
follows. The Commission services have received indications
that there are a number of competitors which are interested
in entering the markets concerned or
re-enforcing their
the
presence on these markets. Under these circumstances,
Commission encourages interested third parties to comment
on the proposed remedies, and notably on their effectiveness.

For the purposes of these Commitments, each of the

10.
following city pairs is considered to be an ‘Affected Route’:

— Paris–Milan;

— Paris–Rome;

— Paris–Venice;

— Paris–Bologna;

— Lyon–Milan;

— Paris–Naples;

— Paris–Florence.

11.

For the purpose of these Commitments, references to:

II. PROPOSED COMMITMENTS

— Paris shall cover Paris-Charles de Gaulle and Paris-Orly

airports;

7.
Société Air France (‘Air France’ or ‘AF’) and Alitalia Linee
Italiane SpA (‘Alitalia’ or ‘AZ’), collectively the ‘Parties’, hereby

(1) Council Regulation (EEC) No 3975/87 of 14 December 1987 laying
down the procedure for the application of the rules on competition
in the air transport sector (OJ L 374, 31.12.1987, p. 1).

— Milan shall cover Milan-Linate and Milan-Malpensa airports;

— Rome shall cover Rome-Fiumicino and Rome-Ciampino

(2) OJ C 111, 8.5.2002, p. 7.

airports.

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For the purpose of these Commitments, the term ‘New
12.
Entrant’ shall mean any airline independent of and uncon-
nected to the Parties wishing to commence a new non-stop
service on an Affected Route or to increase the number of
the
frequencies
exemption becomes effective.

it operates on an Affected Route after

— for

flights between Paris and Rome: up to five (5)

frequencies per day;

— for flights between Paris and Venice: up to three (3)

frequencies per day;

A non-stop service includes a multi-stop service using a single
aircraft that begins and/or terminates in France, Italy or a third
country and has at least one non-stop segment between France
and Italy.

— for flights between Paris and Bologna: up to two (2)

frequencies per day;

13.
For the purpose of these Commitments, an airline shall
not be deemed to be independent of and unconnected to the
Parties when, in particular:

— the effective control (1) of the airline is held solely or in

conjunction by the Parties; or

— it is an associated carrier belonging to the same holding

company as one of the Parties; or

— it is a member of the SkyTeam alliance; or

— the airline co-operates with the Parties on at least one of
the Affected Routes in the provision of passenger air
transport services, except if this co-operation is limited to
agreements concerning servicing, deliveries,
lounge usage
or other secondary activities entered into on an arm's
length basis.

— for

flights between Paris and Naples: up to one (1)

frequency per day;

— for

flights between Lyon and Milan: up to two (2)

frequencies per day;

— for flights between Paris and Florence: up to two (2)

frequencies per day.

2.2. Conditions applicable to all Commitments in Section 2.1

16.
The obligation to make slots available as described in
Section 2.1 shall only be triggered in the circumstances set out
in this Section 2.2.

17.
All slots made available pursuant to these Commitments
set out in Section 2.1 are to be used on the Affected Route for
which the slots were made available.

2. Take-off and landing slots release

t o r s

2.2.1. F r e q u e n c i e s o p e r a t e d b y c o m p e t i -

14.
If a New Entrant wishes to commence a new non-stop
service on one or more Affected Routes (each a ‘New Entrant
City Pair’), the Parties shall make slots available subject to the
conditions set out in this Section 2.

18.
All frequencies operated by airlines independent of and
unconnected to the Parties on the Affected Routes (‘Competing
Frequencies’) shall be counted against the number of slots to be
released by the Parties under Section 2.1.

2.1. The maximum number of slots to be released

15.
The Parties shall be obliged to make available to a New
Entrant the number of take-off and landing slots needed to
support:

19.
The Commission may at any time examine whether the
airline(s) operating on the Affected Routes is independent of
and unconnected to the Parties. Any frequency operated on the
affected routes by an airline which is not independent of and
unconnected to the Parties shall not be counted against the
number of slots to be released by the Parties under Section 2.1.

— for flights between Paris and Milan: either (i) up to six (6)
frequencies per day in case these frequencies are operated
by more than one New Entrant, or (ii) up to five (5)
frequencies per day in case these frequencies are operated
by a single New Entrant;

(1) Within the meaning of Article 2(g) of Regulation (EEC) No 2407/92

of 23 July 1992 on licensing of air carriers.

20.
In case the number of Competing Frequencies on an
Affected Route decreases (e.g., because a competitor (i) ceases
operating the route, (ii) decreases the number of frequencies
operated on the route or (iii) can no longer be considered as
being independent of and unconnected to the Parties),
the
Parties' potential slot surrender obligations shall increase by a
corresponding number, subject to the limitations in Section
2.1.

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In case the number of Competing Frequencies on an
21.
Affected Route increases as a result of new competing
services (because a competitor (i)
increases the number of
frequencies it already operates on an Affected Route or (ii)
enters the market), the Parties' potential slot surrender obli-
gations shall decrease by a corresponding number.

for the airports concerned during the entire period between the
notification of
its intention to apply for slots in order to
operate services on an Affected Route and the end of the
respective IATA scheduling period,
including the final allo-
cation of slots by the coordinator following the Slot Return
Date (1).

In case new Competing Frequencies are added on an
22.
Affected route by a competitor without using slots obtained
from the Parties and if it leads to a situation where the total
number of competing frequencies operated on the route
exceeds the number of frequencies specified in Section 2.1:

(i) the Parties' slot surrender obligations shall decrease by a

corresponding number; and

(ii) slots previously surrendered by the parties which exceed
their potential slot surrender obligations shall only be
withdrawn after
the new Competing Frequencies have
been operated for two IATA seasons.

23.
Subject to the conditions above, the Parties shall not be
required to make a slot available to the New Entrant for an
Affected Route insofar that this would result in the Parties'
operating less than 60 % of the frequencies or capacity on
that Affected Route as measured at
the New
Entrant's request.

the time of

The New Entrant which has to return slots to the Parties
is entitled to

24.
as a consequence of the last two paragraphs,
choose which slots to return.

2.2.2. N o s l o t s a v a i l a b l e v i a t h e S t a n d a r d

S l o t A l l o c a t i o n P r o c e d u r e

25.
At least six (6) weeks prior to the IATA slot conference
for the traffic season in which the New Entrant intends to
commence a new service or increase the number of services
it currently operates, the New Entrant shall notify the Parties of
its intention to request for slots pursuant to the Commitments.
A New Entrant shall be eligible to receive slots pursuant to the
Commitments described in this Section 2 only if it can demon-
strate that all reasonable efforts to obtain slots for the New
Entrant City Pair through the normal workings of the slot
allocation procedure before the beginning of the concerned
IATA traffic season (the ‘Standard Slot Allocation Procedure’)
have failed.

The New Entrant will be deemed not to have exhausted
27.
all reasonable efforts if (i) slots were obtained through the
Standard Slot Allocation Procedure within forty-five (45)
minutes of the times requested but not accepted by the New
Entrant and/or (ii) slots were obtained through the Standard
Slot Allocation Procedure more than forty-five (45) minutes
from the times requested and the New Entrant did not give
the Parties the opportunity to exchange those slots for slots
within forty-five (45) minutes of the times requested.

The slots

released by the Parties

shall be within
28.
forty-five (45) minutes of
the time requested by the New
Entrant if the Parties have slots available within this time-
window.
the Parties do not have slots
available within this time-window, they shall propose to the
New Entrant to release the slots closest in time to its request.

In the event

that

2.2.3. O n g o i n g

a p p l y
o b l i g a t i o n
s l o t s e v e r y s u b s e q u e n t s e a s o n

t o

f o r

Requests for slots to the slot coordinator and to the
for each

shall be renewed by the New Entrant

29.
parties
subsequent IATA scheduling season.

30.
If the New Entrant has obtained slots from the Parties
pursuant to these Commitments for a particular IATA season
and requests some or all of the slots at the same times for the
following season, the Parties shall make slots available as close
as possible to the slots granted in the preceding season, and in
any event within 45 minutes of the time requested, provided
that (i) the Parties are still required to surrender slots pursuant
to Sections 2.1 and 2.2.1 and hold slots within the relevant
time period and, (ii) the New Entrant has complied with the
conditions and procedure described above.

2.2.4. M i n i m u m c a p a c i t y

On the Paris–Milan and Paris–Rome city pairs, New
31.
Entrant slots shall be used exclusively to operate services
with aircraft having a capacity of
forty-six (46) or more
seats. This condition shall not apply where a New Entrant
to the date on which the
has commenced service prior
Commission's exemption decision becomes effective.

26.
To this end, the New Entrant shall apply for these slots
at the forthcoming IATA slot conference through the normal
Slot Allocation Procedure and maintain an ‘open book’ policy

(1) The Slot Return Date shall be the deadline for returning unwanted
slots, as defined in Appendix 2 of IATA's Worldwide Scheduling
Guidelines (7th Edition, effective 1 December 2002).

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2.2.5. E f f i c i e n t

u s e o f

t h e N e w E n t r a n t

s l o t s p o r t f o l i o

32. Where a New Entrant already operates a service to, from
or through one of the airports included in an Affected Route (a
‘Prior Service’) and reduces frequencies on or ceases to operate
the Prior Service, it shall be required to use the slots previously
assigned to the Prior Service for service on the New Entrant
City Pair if these slots are within forty five (45) minutes of the
slots released by the Parties. It shall return to the Parties the
same number of New Entrant slots as were previously assigned
to the Prior Service.

2.2.6. N o n - u s e

o f

s l o t s

r e l e a s e d

b y

t h e

P a r t i e s

33. Where a New Entrant which has obtained slots pursuant
to this Section 2 decides not to commence services on the
to operate a lower number of
Affected Route, decides
frequencies or to cease operating on an Affected Route,
it
inform the Parties in writing and return the unused
shall
slots to them immediately.

34.
In such cases, the obligation of the Parties to make these
slots or the same number of other slots available to New
Entrants pursuant to Section 2.1 above continues, subject to
the provisions of Section 2.2.1.

For the purposes of this Section 2.2.6, a New Entrant
35.
will be deemed to have ceased operating on an Affected Route
where it has not used at least 80 % of its slots during the
scheduling season for which they had been allocated for the
city pair in question, unless this non-use of the slots is justified
on one of the grounds referred to in Article 10(5) of Regu-
lation (EEC) No 95/93 or in any other regulation that amends
or supersedes it. Should the New Entrant be considered to have
ceased operating
to this
paragraph, the Parties may refuse to surrender slots to the
said New Entrant for the next IATA season on this Affected
Route.

the Affected Route pursuant

36.
Should a New Entrant which has obtained slots
pursuant to this section, decide not to commence services on
an Affected Route in two (2) subsequent IATA seasons, the
Parties may refuse to surrender slots to the said New Entrant
for the next two (2) IATA seasons on this Affected Route.

10(4) of that Regulation and before the effective start of the
scheduling season, the Parties shall be entitled to require the
New Entrant to transfer to the Parties a comparable slot as
compensation in case the slot is lost. If, for any reason, the
New Entrant is unable to transfer to the Parties a comparable
slot, they may justify the non-use of the surrendered slot on
the basis of Article 10(5) of Regulation (EEC) No 95/93 in
order to recover and retain the unused slot.

38.
To ensure that the slots provided by the Parties are used
in a manner consistent with these conditions, a mechanism
shall be agreed between the Parties and the New Entrant that
will allow the Parties to monitor how the slots are being used.
The Parties shall
inform the Commission about the agreed
mechanism.

2.2.7. S l o t

r e l e a s e s

s h a l l n o t b e

r e m u n -

e r a t e d

Slots made

39.
Commitments shall be offered without any compensation.

available by the Parties under

these

2.2.8. S l o t

r e l e a s e s

o n

a

p r e f e r e n t i a l

b a s i s

All slots made available pursuant to these Commitments
40.
shall be released by the Parties on a preferential basis to the
New Entrant whose request would allow it
to operate the
highest number of frequencies compatible with the number
of slots which can be obtained from the Parties on the
Affected Route in question, pursuant to the Commitments (1).

41.
Subject to the provisions of Section 2.2.1, if the number
of slots surrendered is lower than the maximum number of
slots to be surrendered pursuant to Section 2.1, the remaining
slots shall be allocated to other potential New Entrants on the
same basis, until there are no slots left to be surrendered.

42.
The slots shall be provided to the New Entrant selected
by the Parties subject to the Commission's review as described
in Section 2.2.9 below.

2.2.9. S e l e c t i o n o f N e w E n t r a n t s

43.
A New Entrant wishing to obtain slots from the Parties
pursuant to these Commitments shall notify the Parties of its
intention to apply for these slots at the forthcoming IATA slot
conference within the time period specified in Section 2.2.2.

37.
Should the New Entrant notify the Parties too late in a
scheduling season for them to use the returned slots pursuant
to Article 10(3) of Regulation (EEC) No 95/93, either with
immediate effect or after the deadline provided for in Article

(1) Number of slots already operated by the New Entrant on the route
in question + number of slots requested to the parties capped to the
maximum number of slots which remain to be surrendered by the
parties pursuant to paragraphs 2.1 and 2.2.1 above.

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A copy of this notification shall be sent at the same
the

to the Commission, at

44.
time by the New Entrant
following address:

European Commission
Directorate-General Competition
Antitrust Registry
Case COMP/A.38.284/D2
B-1049 Brussels
Fax (32-2) 295 01 28

45.
Should a potential New Entrant be unable to obtain
slots through the Standard Slot Allocation Procedure at the
IATA slot conference for the traffic season in which services
are intended to commence, it shall apply to the Parties for slot
releases no more than two (2) weeks following the end of that
slot conference. The application shall take into account the
slots obtained at the slot conference within 45 minutes of
the times requested and give the Parties the opportunity to
exchange slots obtained beyond 45 minutes from the times
requested, for slots of the Parties within 45 minutes of the
times requested pursuant to Section 2.2.2.

A copy of this application shall be sent at the same time

46.
by the New Entrant to the Commission.

47.
No more than four (4) weeks following the end of the
IATA slot conference for the traffic season in which services
are intended to commence, based on the current expectation as
to the allocation of slots for the forthcoming season, the Parties
shall submit to the Commission a proposal for the selection of
the New Entrant on the Affected Route and a proposal for slot
releases to be made to the New Entrant in question.

The Commission shall decide whether or not to approve

48.
this proposal pursuant to the following criteria:

— the New Entrant is independent of and unconnected to the
Parties within the meaning of paragraph 13 above and;

reports. The detailed business plan shall provide information
on the projects of the company in terms of development of its
network,
fleet etc, and detailed information on its projects
regarding the route on which it wants to operate. The latter
should specify in detail the planned operations on the route
over a period of 3 years (size of aircraft, number of frequencies
operated, planned time-schedule of
flights) and the
expected financial results (expected traffic, revenues, profits).
The Commission might also request a copy of all co-operation
agreements the New Entrant may have with other airlines.
information will remain in
Business secrets and confidential
the Commission confidential
and will not become
accessible to other undertakings or to the public.

the

file

shall

remain subject

The Parties' proposal and the Commission's approval
50.
thereof
in case of
subsequent changes in the anticipated allocation of slots by
the slot coordinator that affect the Parties' slot surrender obli-
gations.

to adjustment

51.
In the event of any conflicting requests between New
Entrants, the New Entrant offering the highest capacity may be
favoured.

52.
If the Commission does not oppose the Parties' proposal
within 6 weeks following the end of the IATA slot conference,
this proposal will be deemed accepted.

53.
In case the Commission does not approve the proposal
submitted by the Parties, if other carriers have applied to the
Parties for slots, the Parties shall propose without delay to the
Commission other carriers to be selected as New Entrants.

(1) week after

54. Within one
the approval by the
the New Entrant on the
Commission of
Affected Route, the Parties shall submit their written proposal
for slot releases to this New Entrant.

the selection of

— the New Entrant is a viable existing or potential competitor,
with the ability, resources and commitment to operate the
Affected Route in the long term as a viable and active
competitive force.

2.3. Spread of slots at Paris CDG airport

To ensure that customers of the Parties enjoy the full
55.
benefits of flight connectivity, and without prejudice to Section
2.1, the slots released by the Parties at Paris CDG airport shall
be spread as follows.

49. With this aim in view, the Commission might request
the New Entrant to provide a detailed business plan. This plan
shall contain a general presentation of the company including
its history,
its legal status, the list and a description of its
shareholders and the two most recent yearly audited financial

56.
For the purposes of this paragraph, ‘Morning Peak Time’
shall mean Daily Periods 1 and 2 while ‘Evening Peak Time’
shall mean Daily Periods 4 and 5.

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for each of

The number of slots released by the Parties at Paris CDG
57.
the Affected Routes Paris–Milan and
airport
Paris–Rome shall not exceed two (2) pairs of
slots per
‘Morning Peak Time’ and two (2) pairs of slots per ‘Evening
Peak Time’.

58.
For each of the other Affected Routes, the number of
slots released by the Parties at Paris CDG airport shall not
exceed one (1) pair of slots per ‘Morning Peak Time’ and one
(1) pair of slots per ‘Evening Peak Time’. Furthermore, for these
routes in aggregate, the Parties shall be under no obligation to
release more than a total of two (2) pairs of slots during Daily
Period 2.

Local Time

Daily Period

6:00

7:00

8:00

9:00

10:00

11:00

12:00

13:00

14:00

15:00

16:00

17:00

18:00

19:00

20:00

21:00

22:00

23:00

1

2

3

4

5

6

2.4. Slot releases at Paris and Milan airports

2.4.1. S l o t

r e l e a s e s a t P a r i s a i r p o r t s

59.
Paris CDG and ORY airports being substitutable, any
slots to be made available at Paris airports pursuant to these
Commitments may be released from either CDG or ORY at the
Parties' discretion.

— at the date of the exemption, there is no competing offer in
CDG comparable to the one in ORY on this Affected
Route;

— such New Entrant already operates services on this Affected
Route from ORY at the date of the exemption and wishes
to add additional
frequencies on this route from this
airport;

— the New Entrant has all its scheduled flights serving Paris

operated from or to ORY airport, and;

— the New Entrant cannot obtain slots at ORY airport

through the Standard Slot Allocation Procedure.

In such case, the Parties will make available at ORY

61.
airport up to a total of four (4) daily pairs of slots.

If all conditions above are fulfilled except the third one,
62.
the New Entrant might consider
services
currently operated out of ORY on the Affected Route
it might apply for slots in
concerned to CDG. In this case,
CDG pursuant to Section 2.2.2. Its request will then cover all
the frequencies it wants to operate on the Affected Route out
of CDG, including the frequencies transferred from ORY.

transferring its

2.4.2. S l o t

r e l e a s e s a t L I N a i r p o r t

The Parties shall be required, upon specific request from
63.
a New Entrant, to release slots at LIN airport only if such New
Entrant already operates services on an Affected Route from
LIN and wishes to add additional frequencies on the route from
LIN. In that case, upon fulfilment of the other conditions in
these Commitments, the Parties will make slots available within
the context of regulatory limits and constraints existing at LIN
at the time of the request.

2.5. Slots made available prior to the exemption decision

64.
The Parties are ready to anticipate the release of slots to
a New Entrant on an Affected Route for the IATA Summer
Season 2004 on a voluntary basis. In the event that the Parties
have made slots available to a potential New Entrant in the
period prior to the adoption of the Commission's exemption
decision, those slots shall count towards the number of slots to
be released pursuant to these Commitments.

65.
A new entrant wishing to obtain slots from the Parties
pursuant to this section shall notify its request to the Parties by
January 15, 2004.

60.
However, the Parties shall be required, upon specific
request from a New Entrant, to release slots at ORY airport
for operations on an Affected Route in a situation where:

A copy of this request shall be sent at the same time by

66.
the New Entrant to the Commission.

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The New Entrant

shall be selected by the Parties
67.
according to the criteria set out in Sections 2.2.8 and 2.2.9.
The Parties shall submit to the Commission their proposal for
the selection of the New Entrant on the Affected Route.

protection in cases where the Parties' fare is lower than the
value of the coupon issued by it.

68.
If the Commission does not oppose the Parties' proposal
within 2 weeks from receipt of the proposal, it will be deemed
accepted.

All

72.
Section 3 for a particular New Entrant City Pair shall
automatically in the event
operate that city pair.

interline agreements entered into pursuant to this
lapse
the New Entrant ceases to

that

3. Interlining commitment

3.2. Special prorate agreements

3.1. Conclusion of Interlining agreements

At the request of a New Entrant, the Parties shall enter
69.
into an interline agreement concerning any New Entrant City
Pair operated by the New Entrant (if
it does not have an
existing interline agreement with the Parties).

73.
At the request of a New Entrant, the Parties shall enter
into a special prorate agreement with it for traffic with a true
origin and destination in either France and/or Italy provided
part of the journey involves one of the Affected Routes. The
conditions shall be comparable to those entered into with third
non-alliance/other alliance carriers
in connection with the
Affected Route in question.

Any such interline agreement shall be subject to the

70.
following restrictions:

— it shall apply to the first class, business class and leisure

travel categories only;

— it shall provide for interlining on the basis of the Parties'
published one-way fares when a one-way ticket is issued or
half of
the Parties' published round-trip fares when a
round-trip ticket is issued;

— it shall be limited to true origin and destination traffic

operated by the New Entrant;

— it shall be subject

to the MITA rules and/or normal

commercial conditions;

— it shall include the possibility for the New Entrant, or travel
agents, to offer a return trip comprising services provided
one-way by the Parties and one-way by the New Entrant.

Subject to seat availability in the relevant fare category,
71.
the Parties shall carry a passenger holding a coupon issued by a
New Entrant for travel on a New Entrant City Pair. However, to
avoid abuse, the Parties may require that the New Entrant or
the passenger, where appropriate, pay the (positive) difference
between the fare charged by the Parties and the fare charged by
the New Entrant. In cases where the New Entrant's fare is lower
than the value of the coupon issued by them, the Parties may
endorse their coupon only up to the value of the fare charged
by the New Entrant. A New Entrant shall enjoy the same

4. Frequent flyer programme (FFPs)

74.
If a New Entrant does not participate in one of the
Parties' FFPs or does not have its own comparable FFP, the
Parties shall allow it, on request, to be hosted in their joint
FFP for the New Entrant City Pairs operated by the New
shall be
Entrant. The agreement with the New Entrant
concluded at market competitive rates for
it
operates.

the route(s)

Any agreement relating to a particular New Entrant City
lapse
the New Entrant ceases to

75.
Pair and entered into pursuant to this Section 4 shall
automatically in the event
operate that city pair.

that

5. Commitment to facilitate intermodal passenger
transport services

At the request of a railway or other surface transport
76.
company or sea company operating between France and Italy
(an ‘Intermodal Partner’),
into an
intermodal agreement whereby they provide passenger air
transport on their services on any Affected Route as part of
an itinerary that includes surface or sea transportation by the
Intermodal Partner.

the Parties

shall enter

77.
Any intermodal agreement entered into pursuant to this
Section 5 shall be based on the MITA principles (including the
Intermodal Interline Traffic Agreement — Passenger and IATA
Recommended Practice 1780e)
commercial
conditions.

and normal

9.12.2003

EN

Official Journal of the European Union

C 297/17

The Parties shall accept full pro-rating according to the
78.
terms applied by MITA members, including on routes where
only rail services are provided. Where the Intermodal Partner
requires notification of a sector mileage, a location identifier or
an add-on fare, the Parties shall make such a request to IATA
under normal IATA procedures.

efforts

shall make

Intermodal Partners, provided that

At the request of a potential Intermodal Partner, the
79.
Parties
in good faith to reach an
agreement on conditions comparable to those granted to
other
the necessary
requirements are met especially with regard to safety, quality
of
and liability limits. The
conditions of such an agreement shall override the general
obligations arising pursuant to this Section 5.

insurance

coverage

service,

6. Regulation of frequency increases

The Parties shall not add frequencies on an Affected
80.
Route,
for a period starting when a New Entrant has
received slots from the Parties for operations on this Affected
Route and covering at least two full consecutive IATA seasons,
save in the case of exceptional events requiring additional
flights on short term basis.

7. Duration of exemption and conditions

81.
The Commitments offered by the Parties shall apply
from the date on which the Commission has adopted an
exemption decision under Article 5(4) of Regulation (EEC)
No 3975/87.

The Commitments shall lapse on the date on which the

82.
Article 81(3) exemption no longer applies.

Should the Commission revoke

83.
the Article 81(3)
exemption of the cooperation agreement pursuant to Article
6 of Regulation (EEC) No 3975/87 or an equivalent provision
should the Article 81(3)
in any subsequent

regulation,

exemption be annulled, or should the Parties terminate the
notified cooperation agreements, the conditions shall be null
the date of
and void as from the date of revocation,
the
annulment or the date of termination.
In such a case, the
Parties shall have the right to demand the return of and to
recover any slots provided under these Commitments to an
airline which, at the time of the revocation, annulment or
termination,
is operating services on routes between France
and Italy using those slots. The Parties shall also have the
to terminate any interlining, special prorate, FFP or
right
intermodal
to these
Commitments.

entered into pursuant

agreements

8. Review clause

84.
The Commission may in response to a request from the
Parties showing good cause, waive, modify, or substitute any of
the Parties' obligations under these Commitments.

III. CONCLUSION

85.
In accordance with Article 16 (3) of Regulation (EEC)
3975/87, the Commission invites interested parties to submit
their observations on the above notice, and notably the
proposed Commitments, within 45 days of the date of publi-
cation of this notice, to:

European Commission
Directorate-General for Competition
To the attention of Michel Lamalle or Christine Tomboy
Case COMP/A.38.284/D2
Unit COMP/D2,
Office J-70 02/5
B-1049 Brussels
Rue de la Loi/Wetstraat 200
Fax (32-2) 296 98 12
E-mail: michel.lamalle@cec.eu.int or
christine.tomboy@cec.eu.int