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OST-2006-26409 - IATA
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International Air Transport Association November 20, 2006 Application for Approval of Agreements TC2 Within Europe (Memo 0646) Expedited Resolutions Geneva, 16-17 October 2006 Minutes: TC2 Within Europe (Memo 0648) Geneva, 16-17 October 2006 Intended Effective Date: 4 December 2006. Counsel: IATA, Douglas Lavin
Order 2006-12-24 Issued December 27, 2006 | Served January 2, 2007 Under the Flex Fares scheme described in the application, IATA will establish interline business‑class normal fares by computing an average of IATA carriers' own fully‑flexible market fares for each city pair, based on certain criteria, and then adding a six percent "interline premium." Interline economy-class flex fares will be set at the same level as the business‑class flex fare on each route. JATA will no longer establish interline discount fares. The flex fares will be recomputed twice yearly, and the six‑percent interline premium may be amended through the e Tariffs process, an internet platform operated by IATA. E‑Tariffs involve no direct communication between carriers; each carrier's proposals remain anonymous except to the IATA chairman, who packages proposals for blind voting. IATA carriers may opt out of the flex fares upon two weeks' notice to IATA. For the reasons stated below, we have determined that exempting the ECAA Flex Fares agreement ‑‑ to the extent that it covers interlineable fares for travel within the ECAA, the fares produced by the agreement, and any changes to the agreement ‑‑ from our filing and approval requirements is consistent with the public interest. First, IATA's intra‑Europe fare agreements have seldom raised any public‑interest issues involving U.S. passengers under U.S. aviation policy or U.S. antitrust laws, and we have typically approved the agreements using expedited procedures. Second, the Commission has terminated the block exemption for IATA tariff‑coordination activities within the EU, and the ECAA Flex Fares will be fully subject to EU competition law. Intra‑Europe fares and competition policy are primarily the concern of the EU and its member states, and the Commission has demonstrated that it takes its responsibilities as guardian of EU competition law very seriously. As the ECAA Flex Fares system will not enjoy an exemption from EU competition law we do not believe that a grant of immunity from US. antitrust law is required for IATA to go forward. By: Andrew Steinberg
June 11, 2007 Application for Expansion of Exemption Amended Resolution 111eu - TC2 Within Europe Flex Fares Amended Resolution 042eu - TC2 Within Europe Intermediate/Business Class Flex Fares Amended Resolution 062eu - TC2 Within Europe Economy Class Flex Fares Intended effective date: 1 July 2007. Counsel: IATA, Douglas Lavin, 202-293-9292
June 19, 2007 ECAA Package and Minutes Inadvertently Omitted in the Original Filing Counsel: IATA, Douglas Lavin
June 20, 2007 Application for Expansion of Exemption 002 Amending Resolution between Europe and South West Pacific 111bb TC23 Flex Fares between Europe and South West Pacific 045bb Intermediate/Business Class Flex Fares between Europe and South West Pacific 055bb First Class Flex Fares between Europe and South West Pacific 065bb Economy Class Flex Fares between Europe and South West Pacific Intended effective date: 1 July 2007. Counsel: IATA, Douglas Lavin
August 2, 2007 Application for Expansion of Exemption TC23 Europe-South Asian Subcontinent, Expedited Composite Resolutions, Bangkok, 13 July 2007 IED: 1 November 2007, Memo 0159, 2 August 2007. Counsel: IATA, Douglas Lavin, 202-293-9292
Order 2007-9-16 Issued September 14, 2007 | Served September 19, 2007 Order Amending Exemption | Word We will grant the expanded exemptions as requested, under the same conditions. We find that an expansion of the Flex Fare mechanism to include IATA interline fares for travel within Europe, as defined by IATA for purposes of its TC2 geographic tariff conference, is consistent with the public interest for the reasons stated in Order 2006-12-24. While technically, the prior block exemption from EU competition law for tariff coordination between the ECAA and other points in Europe is still in force, we have no fundamental concern that IATA’s new mechanism will differ when the other European states and regions are added. The intra-ECAA markets are by far the predominant ones within the TC2 (Europe) tariff conference, and it makes practical sense for IATA to apply its new procedures in their entirety to the whole geographic conference. More significantly, as we noted in Order 2006-12-24, IATA fares for travel not only within the EU but within Europe in general typically present no public interest concerns justifying our review of agreements limited to such travel. For similar reasons, we will also expand our exemption to cover passenger and cargo agency conference resolutions that apply solely to agents within Europe as defined by IATA in its amended request. Finally, we will grant the expanded exemption requested for the Europe-South West Pacific and Europe-South Asian Subcontinent regions, as defined by IATA for purposes of its TC2-3 geographic tariff conference. This exemption would cover both an expansion of the Flex Fare mechanism to include IATA interline fares for travel between Europe and the South West Pacific and South Asian Subcontinent as well as passenger and cargo agency conference resolutions that apply solely to agents within Europe and the South West Pacific and the South Asian Subcontinent. By: Andrew Steinberg
September 21, 2007 Application for Approval of Agreements TC2 Europe-Middle East Expedited Resolutions. Intended Effective Date: 1 November 2007. Counsel: IATA, Douglas Lavin
November 28, 2007 Technical Correction: Mail Vote 549 - Flex Fares Package TC23 Europe-South East Asia Expedited Resolutions (Memo PTC23 0266) Intended Effective Date: 1 December 2007. Counsel: IATA, Douglas Lavin, 202-293-9292
December 7, 2007 Application for Approval of Agreements TC23 Europe-Japan, Korea Expedited Resolutions (Memo 0158). Counsel: IATA, Douglas Lavin
December 18, 2007 TC23 Europe-Japan, Korea Expedited Resolutions (Memos 0161 and 0162). Counsel: IATA, Douglas Lavin
February 8, 2008 Application for Expansion of Exemption TC2 Europe-Africa Expedited Resolutions (Memo 0253). By Order 2006-12-24, the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares within the European Common Aviation Area, future amendments to those Resolutions, and fares generated under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, provided that the Resolutions and amendments thereto are limited to the establishment of fares for travel within the ECAA. IATA now has adopted Resolutions that establish the Flex Fares system on all routes between EUROPE and Africa. IATA’s present application requests expansion of the exemption from condition #2 granted by Order 2006-12-24 so that the exemption will encompass the EUROPE- Africa Flex Fares Resolutions, future amendments thereto, and fares generated under the Resolutions, provided that they are limited to travel between the EUROPE and Africa. Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Application for Expansion of Exemption By Order 2006-12-24, the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares within the European Common Aviation Area future amendments to those Resolutions, and fares generated under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, provided that the Resolutions and amendments thereto are limited to the establishment of fares for travel within the ECAA. IATA now has adopted Resolutions that establish the Flex Fares system on all routes between EUROPE and Middle East and EUROPE and Africa. IATA’s present application requests expansion of the exemption from condition #2 granted by Order 2006-12-24 so that the exemption will encompass the EUROPE and Middle East and EUROPE and Africa Flex Fares Resolutions, future amendments thereto, and fares generated under the Resolutions, provided that they are limited to travel between the EUROPE and Middle East and EUROPE and Africa. Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Technical Correction of Pending Agreements | Word - Replacement Copy TC2 Europe-Middle East (Memo 0243) TC2 Europe-Africa (Memo 0254). Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Application for Expanded Exemption By Order 2006-12-24, the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares within the European Common Aviation Area, future amendments to those Resolutions, and fares generated under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, provided that the Resolutions and amendments thereto are limited to the establishment of fares for travel within the ECAA. IATA subsequently adopted resolutions expanding the Flex Fares system to include all of Europe and to include the Europe-Southwest Pacific and Europe-South Asian Subcontinent regions. Order 2007-9-16 (14 September 2007) expanded the exemption from filing granted by Order 2006-12-24 to include those regions, on the ground that fares for travel within those regions typically present no public interest concerns justifying the Department’s pre-implementation review of agreements limited to such travel. Thereafter, IATA has filed additional applications in this docket related to further expansion of the Flex Fares system: between Mexico, Mid-Atlantic, South Atlantic and Europe (filed 8 November 2007); between Europe and Middle East (filed 8 November 2007); between Europe and South East Asia (filed 29 November 2007); between Europe and Japan and between Europe and Japan via AP, EH, FE, RU, TS (filed 11 December 2007 and 20 December 2007). By those pending applications, IATA requests further expansion of the exemptions granted by Orders 2006-12-24 and 2007-9-16, relying on the same grounds found to justify the previous Flex Fares exemptions. Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Technical Correction of Pending Agreements - Replacement Copy TC2 Europe-Middle East Expedited Resolutions (Memos 0242 and 0245). Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Technical Correction of Pending Agreements - Replacement Copy Mail Vote 549 - Flex Fares Package TC23 Europe-South East Asia Expedited Resolutions (Memo 0266). Counsel: IATA, Douglas Lavin, 202-628-9292
February 8, 2008 Technical Correction of Pending Agreements - Replacement Copy TC23 Europe-Japan, Korea Expedited Resolutions (Memos 0161 and 0162). Counsel: IATA, Douglas Lavin, 202-628-9292
February 29, 2008 Application for Expanded Exemption from Filing and Approval of Agreements The subject agreements are IATA Resolutions that together establish the procedures for establishing passenger Flex Fares on routes between Middle East, Africa and South West Pacific sub-area of IATA Tariff Conference 23. What is submitted for review and exemption is a process and algorithm for defining fully flexible fare products for first class, business class and economy class travel on certain routes within this sub-area. Prior Department rulings in this docket provide the context and precedent for the present request. By Order 2006-12-24, the Department exempted the Resolutions establishing the Flex Fares system for establishing IATA interline fares within the European Common Aviation Area (ECAA), future amendments to those Resolutions, and fares generated under the Resolutions from condition #2 imposed on the Provisions for the Conduct of the IATA Traffic Conferences, provided that the Resolutions and amendments thereto are limited to the establishment of fares for travel within the ECAA. IATA subsequently adopted resolutions expanding the Flex Fares system to include all of Europe and to include the Europe-Southwest Pacific and Europe-South Asian Subcontinent regions. Order 2007-9-16 (14 September 2007) expanded the exemption from filing granted by Order 2006-12-24 to include those regions, on the ground that fares for travel within those regions typically present no public interest concerns justifying the Department’s pre-implementation review of agreements limited to such travel. Thereafter, IATA has filed additional applications in this docket related to further expansion of the Flex Fares system: between Mexico, Mid-Atlantic, South Atlantic and Europe (filed 8 November 2007); between Europe and Middle East (filed 8 November 2007); between Europe and South East Asia (filed 29 November 2007); between Europe and Japan and between Europe and Japan via AP, EH, FE, RU, TS (filed 11 December 2007 and 20 December 2007). By those pending applications, IATA requests further expansion of the exemptions granted by Orders 2006-12-24 and 2007-9-16, relying on the same grounds found to justify the previous Flex Fares exemptions. Counsel: IATA, Douglas Lavin
March 11, 2008 Application for Expansion of Exemption Mail Vote 560 - Flex Fares Package TC23/123 Europe-Japan, Korea Special Passenger Amending Resolutions Between Europe and Korea (Rep. of), Korea (Dem. Rep. of) (Memo 0167). Counsel: IATA, Douglas Lavin, 202-628-9292
Request for Withdrawal of Agreement Please withdraw agreement below from Docket OST-2006-26409-0014.1. It was filed in this docket in error and will be filed in a separate docket. TC2 Europe-Middle East (Memo 0243); TC2 Europe-Africa (Memo 0254) Expedited Composite Resolutions. Counsel: IATA, Douglas Lavin
March 28, 2008 For filing purposes Resolution 250n is removed from PTC23 EUR-J/K 0167 and included in new Memorandum PTC23 EUR-J/K 0169, which will be filed in a separate docket (see OST-2008-0123). Counsel: IATA, Douglas Lavin
Order 2008-4-45 Issued April 30, 2008 | Served May 5, 2008 Order Amending Exemption | Word In its applications, IATA states that the broadening the exemption is justified by substantially the same reasons the Department relied on in Order 2006-12-24 granting the original exemption, and would be in the public interest. First, the subject agreements concern non-U.S. fares, and such fare agreements typically are approved using expedited procedures, because they seldom raise any public interest issues involving U.S. passengers under U.S. aviation policy or U.S. antitrust laws. Second, the Flex Fares system in the additional markets will be subject to the competition laws of the EU. Third, granting the requested exemption is consistent with actions the Department has taken on other IATA agreements that do not present significant issues under U.S. antitrust laws, such as the agreements of the IATA Services and Agency Conferences. We will grant the expanded exemptions as requested, under the same conditions. IATA fares for travel between non-U.S. markets typically present no public interest concerns justifying our review of agreements limited to such travel. We find that an expansion of the Flex Fare mechanism to include IATA interline fares for travel in the additional non-U.S. markets to/from Europe is consistent with the public interest for the reasons stated in Order 2006-12-24. In our earlier orders, we expanded our exemption to cover passenger and cargo agency conference resolutions that apply solely to agents within Europe and the other world areas covered by Flex Fares, because the agency resolutions, like IATA’s tariff coordination activities, are fully subject to the competition laws of the EU and other jurisdictions and are more properly the concern of those authorities. With the widespread expansion of Flex Fares to additional markets it would be anomalous to exempt the agency resolutions only for the countries covered by IATA’s instant applications, leaving a shrinking number of markets subject to the Department’s filing and approval requirements. In addition, the present scope of our exemptions of agency resolutions has engendered some confusion. For example, a number of pendin[1]g agency agreements include resolutions applicable only in geographic areas we have already exempted, and those resolutions should not have been filed. For these reasons we will grant an exemption for the resolutions of IATA’s passenger and cargo agency conferences on a worldwide basis. By: Michael Reynolds |
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