Concerning Case IV/32 792 — IATA Cargo Agency Programme (90/C 320/04)
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No C 320/4 Official Journal of the European Communities 20. 12. 90 Notice pursuant to Article 19 (3) of Regulation No 17 (') concerning Case IV/32 792 — IATA cargo agency programme (90/C 320/04) I II NOTIFICATIONS THE PARTIES: IATA AND ITS MEMBERSHIP 1. On 7 July 1988 the Director General on behalf of IATA and on behalf of its member airlines participating 4. IATA is an association of enterprises composed of in the IATA Cargo Agency Conference (CACONF) (2) 189 member air carriers. It was founded at the Inter applied for negative clearance of the IATA Cargo national Air Transport Operators Conference at Havana, Agency Programme as applicable within the EEC, and, Cuba, in April 1945. to the extent that such negative clearance could not be granted, for an exemption under Article 85 (3) of the Treaty establishing the European Economic Community. 5. Members of IATA are classified as active or associate. Any air transport enterprise operating an air The core of this application consisted of IATA resolution service between the territories of two or more States is 801 series, namely: eligible for membership as an active member. — Resolution 801 — cargo agency administration rules, 6. The parties are the 154 active member airlines participating in the IATA Cargo Agency Conference — Resolution 801a — cargo agency agreement. (CACONF). Thirty-five IATA associate member airlines (3) do not offer international scheduled services nor participate in the CACONF. The arrangements, 2. Subsequent to this application the IATA CACONF however, affect them because they comply with them. adopted a new resolution 803 series replacing resolution 801 and introducing material changes to IATA's arrangements concerning cargo agencies. The new resol utions were notified on 2 October 1989. According to IATA they were developed with a view to the changing Ill regulatory environment and took into account, inter alia, the Commission's concerns regarding cargo agents. THE MARKET 3. By letter of 17 April 1990 IATA further notified resolution 805 series substituting resolution 803 as the 7. According to IATA the global operating revenues basic applicable regime in the European Community. for scheduled internatonal cargo services of all IATA Three resolutions were then filed: member airlines in 1989 were approximately US $ 12 500 million, out of total revenues for all services (passenger, cargo, mail and other) of about US $ 70 700 million. — Resolution 805 — IATA cargo agency distribution The individual members' total turnovers (passenger, cargo, mail and other) range from US $ 1,5 million to system rules — Europe, US $ 9 960 million. — Resolution 805d — agency commissioner, According to the Association of European Airlines — Resolution 805e — conduct of review by agency (AEA) Yearbook Statistical Appendices for 1988, the 4 commissioner. total revenues of AEA airlines based in the EEC ( ) coming from international cargo traffic amounted to These resolutions contain a number of changes in US $ 4 899 million. comparison to the provisions of the earlier resolutions. Many of these changes were introduced following the Commission's intervention. (3) See Annex. (4) EEC carriers in AEA comprise Aer Lingus, Air France, (') OJ No 13, 21. 2. 1962, p. 204/62. Alitalia, British Airways, Iberia, KLM, Lufthansa, Luxair, (2) IATA active members, listed in Annex. Olympic, Sabena, SAS, TAP and UTA. 20. 12. 90 Official Journal of the European Communities No C 320/5 8. All IATA member airlines use the Agency scale and the benefits of standardization and auto Programme for their sales. IATA accredited cargo agents mation in the collection and distribution of monies — which number approximately 1 000 in the EEC, of a due from IATA agents to airlines; total of some 3 000 IATA agents registered worldwide — are in the majority independent businesses. (It is estimated that in the EEC there are approximately 300 to (c) vocational training programmes, helping interme 400 professional intermediaries handling international diaries, both IATA agents and others which may cargo not registered as IATA cargo agents.) However, seek IATA accreditation, to achieve and maintain in they may sometimes be part of a group of companies. In a cost-effective manner the standards required to a few instances, they are controlled by transport enter help the customer to make his choice of the airline prises such as railways and shipping lines and even by services offered; this is particularly important in member airlines of IATA. developing competence in handling of dangerous goods, to ensure safety of passengers, of crew and of aircraft on which these shipments are loaded. 9. Sales take the form of a contract for carriage (air waybill) issued by the airline or, within the terms of the arrangements, by the airline's appointed agent on the 12. The management of the programme is assigned to airline's behalf. The airlines have their own sales outlets the agency administration division, within the IATA in their biggest markets, but make, according to secretariat. estimates, approximately 70 % of their sales in Europe through IATA cargo agents, the remainder being handled through airlines' own sales offices, or through their general sales agents. The IATA resolutions under examination (') IV Qualifications for accreditation and retention as an IA TA cargo agent THE IATA CARGO AGENCY PROGRAMME 13. Any person in possession of the appropriate official licences, where required, may become an IATA General cargo agent by making an application in the form prescribed to the IATA agency administrator in the country where such person carries on business, and by meeting the qualifications set out below. Such qualifi 10. The cargo agency programme, which has been cations must continue to be met in order to ensure established by the CACONF and is the IATA's system retention as an IATA cargo agent. For this purpose the for appointing intermediaries in the field of cargo term 'applicant' should be understood to include an carriage, is one of its basic institutions. It is argued that aiready accredited agent. the main objective of the programme is to ensure that cargo agency outlets selling on behalf of IATA Members are professional, provide safe handling of dangerous goods, provide dependable service to shippers and 14. The applicant must submit independently appointing airlines, and handle shippers' goods and produced financial statements prepared in accordance airlines' monies with integrity. with local accounting practices as specified and published by the IATA body entrusted with accreditation; such statements are evaluated pursuant to the methodology and standards established from time to time by the same 11. The programme incorporates three main features: body. To obtain a satisfactory evaluation, the applicant may be required to provide additional financial support in the form of recapitalization or of a bank or insurance guarantee. When the financial position of an agent is (a) accreditation, whereby any person may seek reviewed, if the agent is unable to meet the financial approval to promote, sell and process international criteria, normal business fluctuations are taken into air cargo transportation for remuneration by IATA account, and the agent will be provided with a member airlines, by satisfying specified basic criteria reasonable period of time to meet those criteria. and entering into contractual relations with those airlines; (b) cargo accounts settlement systems (CASS), which (') Unless otherwise specified the provisions above are provide to both airlines and agents economies of contained in resolution 805. No C 320/6 Official Journal of the European Communities 20. 12. 90 15. The applicant is required to employ at all places (c) delivering (or arranging for delivery of) where it makes air cargo ready for carriage full-time consignments to an airline at any airport designated staff competent and qualified to provide the services and by the airline for general acceptance of all handling functions set by LATA. The applicant must consignments ready for carriage; supply evidence that: (d) accepting restricted articles for carriage and delivery (or arranging for delivery) to an airline in (a) two such persons hold an adequate basic diploma accordance with the applicable dangerous goods having completed an acceptable course; regulations; (e) collecting charges from customers, and remitting (b) two such persons, at the time of application and at monies due to carriers. all times subsequent to registration: 18. Where officially required, the applicant must be in (i) hold an LATA advanced diploma including possession of a valid licence to trade. Suspension or training in handling of dangerous goods, withdrawal of this licence constitute grounds to initiate a obtained within the previous two years; or review of the agent. (ii) have completed, within the previous two years, 19. The applicant must not have a name which is: an equivalent dangerous goods course of training given by an LATA member, or another (a) the same as, or misleadingly similar to that of an training course in handling dangerous goods IATA member or IATA; or recognized by LATA offered by another entity; (b) the same as that of another IATA cargo agent in the same country; this prohibition does not apply to where the applicant's staff at such places is limited to persons entered on the cargo agency list prior to 1 two such persons, both must meet the requirements set April 1984. forth in (a) and (b). The place of business must not be identified as an office of an IATA member. 16. The applicant must, in the country concerned: 20. The applicant, its managerial staff, its principal (a) maintain and operate at least one office (or a stockholders (and persons for whom they act as department of such an office) engaged in the nominees), directors, officers and managers must not promotion or sale of international air cargo trans have been found guilty of wilful violations of fiduciary portation over the lines of IATA members, and the obligations incurred in the course of business, nor be handling of consignments therein; undischarged bankrupts.