This project is targeted on the compatibility of international airline alliances with EC- competition policy like merger policy etc. Is the Commission’s existing strategy to forbid particular limited global alliances the ideal cure for the issue of certain alliances’ anti-competitive effects? Can other conclusions be drawn by taking a strategy depending on effectiveness arguments which suggest a trade-off between the efficiency gains as well as the inevitable anti-competitive effects of the alliances? Will the outcomes of the latter strategy be in the public interest and does it comply with EC- competition policy such as merger policy and EC-competition law? You’ll find 3 goals of this report; 2 intermediate aims, that are to introduce the intricate character of international airline alliances to legal practitioners, specifically the alliances’ influence on competition in the European union aviation industry, and also to demonstrate the Commission’s evaluation of the appropriate market and its suggested actions to handle the constraint of competition. After that the purpose is to produce a substitute approach – “the efficiency policy” – and check out its conformity to EC-competition policy like merger policy and legislation…
Contents: Global Airline Alliances and EC-Competition Policy
1. INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM
1.3 PROCEDURE
1.4 METHOD
1.5 SOURCES
1.6 LIMITATION.
2. THE EMERGENCE OF GLOBAL AIRLINE ALLIANCES AND THE HISTORY AND PRESENT STATE OF INTERNATIONAL AVIATION REGULATIONS
3. THE CHARACTERISTICS OF GLOBAL AIRLINE ALLIANCES
3.1 STRUCTURE OF GLOBAL AIRLINE ALLIANCES
3.2 HUB-AND-SPOKE SYSTEMS
3.3 THE COMMON MEANS OF CO-OPERATION
4. ECONOMIC AND OTHER BENEFITS OF GLOBAL AIRLINE ALLIANCES
4.1 BASIC AIRLINE ECONOMICS
4.2 BENEFITS TO AIRLINES
4.2.1 The benefit of operating hub-and-spoke systems
4.2.2 The benefit of integrating hub-and-spoke systems into hub-and-spoke networks
4.2.3 The benefit of alliance agreements
4.3 BENEFITS TO CONSUMERS
4.3.1 Global alliances serve more “on-line” destinations
4.3.2 Global alliances provide more “seamless” international travel
4.3.3 Global alliances offer lower fares than non-alliance carriers
4.3.4 Global alliances help enhancing international aviation safety
4.4 BENEFITS TO COMMUNITIES
4.5 BENEFITS TO INTERNATIONAL AVIATION LIBERALISATION
5. POSSIBLE DISADVANTAGES OF GLOBAL AIRLINE ALLIANCES
5.1 INTRODUCTION
5.2 STRUCTURAL PROBLEMS
5.3 THE REDUCTION OF COMPETITION ON OVERLAPPING ROUTES
5.4 ANTI-COMPETITIVE ACTIONS BY THE LARGEST AIRLINES
5.5 ANTI-COMPETITIVE BEHAVIOUR AS A RESULT OF A MORE CONCENTRATED AVIATION MARKET
6. THE COMMISSION’S CURRENT COMPETITION AND MERGER POLICY CONCERNING GLOBAL AIRLINE ALLIANCES
6.1 INTRODUCTION
6.2 REGULATORY PROBLEMS
6.3 THE 11TH
ANNUAL CONFERENCE OF EUROPEAN AIR LAW ASSOCIATION
6.4 THE COMMISSION DECISION ON THE UNITED AIRLINES / US AIRWAYS MERGER
6.4.1 Introduction
6.4.2 The Commission’s assessment of the relevant market in general
6.4.3 The Commission’s assessment of the relevant market in UAL/US Airways
6.4.4 The results of the Commission’s investigation
6.4.5 The remedies suggested to and accepted by the Commission
6.5 ANALYSIS OF THE COMMISSION’S DECISION
6.5.1 Is the Commission’s assessment of the relevant market correct
6.5.2 Are the remedies sufficient?
6.5.3 Conclusions
6.6 CONCLUSIONS ABOUT THE COMMISSION’S CURRENT POLICY REGARDING GLOBAL ALLIANCES
7. THE CONSEQUENCES OF THE COMMISSION’S CURRENT POLICY
8. SUGGESTIONS TO AN ALTERNATIVE COMPETITION POLICY CONCERNING
GLOBAL AIRLINE ALLIANCES
8.1 SHORT-RUN EFFECTS OF THE “EFFICIENCY POLICY”
8.1.1 Consumer perspectives…
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