IATA Tariff Conference Fact Sheet

Current Status:

• The EC Block Exemption for IATA Tariff Consultations expired on June 30, 2005
• Competition Directorate-General has officially put forward the following proposal:
  • Extend the Block Exemption for Passenger Tariff Conferences on intra-EU routes until 31 December 2006, so that the industry has time to develop an alternative pricing system for interlining.
  • Extend the Block Exemption for Passenger Tariff Conferences on routes to/from EU until 30 June 2008.
• It is business as usual for the time being
• EU has stated it wants the consumer benefits provided by the interline system but it dislikes the process of airlines meeting face to face
• IATA is committed to working with the DG Competition to find a solution to its concerns on process
• IATA has submitted extensive evidence that the conferences bring about consumer benefits without harming competition. 
  • over the past ten years, prices for air travel have plummeted by almost 30%
  • carriers in the European market continue to fight vigorously for passengers and market share on a daily basis
  • consumers may choose to fly on an interline ticket, or shop for other possibilities 

Interline System:

• Provides a travel option that enables:
  • fully flexible fares
  • allows last minute changes/routings on other airlines
  •  provides a single ticket (fare) for a journey using 2 or more carriers
  • provides for baggage transfer at connecting points
• A through fare established between any two cities can be used for a combination of non-stop, connecting flights on the same airline, or connecting flights on different airlines.
• For connecting services the interline fare is usually lower than the sum of the fares of each of the connecting flights.
• Interlining provides consumers with additional options when:
  • direct flights are not operated on the day or at the time the consumer wishes to travel
  • the passenger’s first choice is already sold out
  • the passenger wishes to stop at an intermediate city or cities
  • the passenger chooses to fly on different airlines on the outbound and the return journeys

Consumer Benefits:

• Gives consumers access to a combination of airlines’ networks on one ticket paid for in one currency.
• Gives access to 350 companies and almost 3900 airports worldwide.
• Allows passengers to choose the route and airlines that best meet their needs within a limit of 120% of the distance of the most direct route.
• Passengers can change their flights, airlines, routing and/or connecting airports, even after the trip has started.
• On an IATA interline fare passengers can also:
  • cancel the ticket and receive a refund
  • depart without a return reservation
  • add or delete intermediate stopping points
• Without interlining, passengers may have to collect their baggage at each connecting airport and clear them through customs formalities before checking them in again.
• Without interlining connecting times will increase significantly and the chances of missing a connecting flight will also go up.

Tariff Consultation:

• Tariff conferences have been conducted worldwide since 1946.
• There are currently 124 airlines that participate in the consultations for passenger and 90 airlines that participate for cargo.
• There is no requirement to participate in Tariff Consultation or be an IATA member to interline.
• At Tariff Conferences carriers:
  • meet to establish the fare conditions and prices for fully flexible interline travel
  • this joint price does not affect other airline fares
  • once necessary government approvals are in, fares are then distributed through the Global Distribution Systems (GDSs)
• Currently approximately 350 airlines interline.
• The process is globally recognised by governments and ICAO.