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.

FMI: http://dms.dot.gov