Posted by David Fischer
on Thursday, July 6th 2006 at 10:11 am under Antitrust.
Reuters reports that:
The U.S. Transportation Department proposed on Wednesday lifting an antitrust waiver for an international trade group that sets airfares and air cargo rates between the United States and Europe.
…
The change could open key transatlantic and Pacific markets to more price competition, potentially leading to lower fares and more choices for consumers and shippers, U.S. regulators said.
Competition authorities in Europe and Australia have also taken steps to change their regulations to reduce the influence of IATA, a Montreal-based group that represents more than 250 carriers.
Limited immunity from fair competition laws allow the global trade group to discuss and establish the cargo rates and passenger fares that its carriers can charge in many markets. All members have to agree to a pricing strategy for it to take effect.
IATA does not bar individual carriers from establishing their own pricing strategies in some cases. But some countries that closely regulate international fares have been reluctant to deviate from IATA standards.
Technorati Tags: antitrust, airlines
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