IATA agrees with EC on termination of cargo rate consultations

The International Air Transport Association, IATA, says that it agrees with the European Commission on a decision to terminate consultations on cargo rates for shipments between points in the EEA, while the Commission says that the continued application of global cargo tariff rules and procedures within the EEA will not infringe EC competition rules.

IATA says the clearance of these rules and procedures are necessary for the functioning of a multilateral cargo interline system that applies internationally throughout the rest of the world – including to and from the EEA.

The Association also says it believes that the multilateral interline system for cargo shipments within the EEA created real benefits and should qualify for exemption.

Eliminating this system, it says, will have negative effects for smaller markets, markets on the periphery of Europe, and for certain types of goods, in terms of reduced service offerings, less flexibility and increased cost.

However IATA acknowledges that the commercial value for IATA Member Airlines of multilateral cargo interlining within the EEA is no longer sufficient to justify the cost of further efforts to retain an exemption.

In Europe distances between cities are relatively short and, with air and truck services closely integrated, the level of cargo interlining is lower than in other parts of the world.

IATA emphasizes that there are no implications for IATA Multilateral interlineable rates in other areas of the world, and in particular to/from the EEA and that this announcement has no bearing on IATA activities that support passenger interlining, which is covered in depth in IATA’s recent response to the Commission’s Consultation on Passenger Tariff Conferences.