Circular 215. Guidance Material on the Avoidance or Resolution of Conflicts over the Application of Competition Laws to International Air Transport

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Circular 215

Guidance Material on the Avoidance or Resolution of Conflicts over the Application of Competition Laws to International Air Transport

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CIRCULAR Guidance Material on the Avoidance or Resolution of Conflicts over the Application of Competition Laws to International Air Transport Prepared by the Secretary General and published by decision of the Council INTERNATIONAL CIVIL AVIATION ORGANIZATION MONTREAL CANADA

Published in separate English, French, Russian and Spanish editions by the International Civil Aviation Organization. AN correspondence, except orders and subscriptions, should be addressed to the Secretary General. Orders for this publication should be sent to one of the following addresses, together with the appropriate remittance by bank draft or post office money order in U.S. dollars or the currency of the country in which the order is placed. Document Sales Unit international Civil Aviation Organization 1000 Sherbrooke Street West, Suite 400 Montreal, Quebec Canada H3A 2R2 ' Egypt. ICAO Representative, Middle East Office, 16 Hassan Sabri, Zamalek, Cairo. France. Representant de I'OACI, Bureau Europe, 3 bis, villa mile-ererat, 92522 Neuilly-sur-Seine Cedex. India. Oxford Book and Stationery Co., Scindia House, New Delhi or 17 Park Street, Calcutta. Japan. Japan Civil Aviation Promotion Foundation, 15-12, 1-chome, Toranomon, Minato-Ku, Tokyo. Kenya. ICAO Representative,-Eastern and Southern African Office, United Nations Accommodation, P.O. Box 46294 Nairobi. Mexico. Representante de la OACI, Oficina NorteamCrica, Centroamerica y Caribe, Apartado postal 5-377, C.P. 11590, Mexico 5, D.F. Peru. Representante de la OACI, Oficina SudamCrica, Apartado 4127, Lima 100. Senegal. Representant de I'OACI, Bureau Afrique occidentale et centrale, Boite postale 2356, Dakar. Spain. Pilot's, Suministros Aeronauticos, S.A., C/Ulises, 5-Oficina Num. 2, 28043 Madrid Thailand. ICAO Representative, Asia and Pacific Office, P.O. Box 614, Bangkok. United Kingdom. Civil Aviation Authority, Printing and Publications Services, Greville House, 37 Gratton Road, Cheltenham, Glos., GL50 2BN. Do you receive the ICAO BULLETIN The ICAO Bulletin contains a concise account of the activities of the Organization as well as articles of interest to the aeronautical world. The Bulletin will also keep you up to date on the latest ICAO publications, their contents, amendments, supplements, corrigenda and prices. Available in three separate editions English, French and Spanish. Annual subscription U.S.20.00 surface mail U.S.25.00 air mail.

Foreword In 1985 the Third Air Transport Conference adopted Recommendation 5 which called on the Council to "develop as a matter of high priority, appropriate guidance material for avoidance or resolution of conflicts between Contracting States over application of national competition laws to inter- national air transport, especially where bilateral air services agreements provisions are affected and where extraterritorial application is alleged". The Conference considered that Recommendation 5 represented one specific aspect of implementing Assembly Resolution A24-14 which instructed the Council "to study with the resources available in the Secretariat, the effects which unilateral measures may have on international air transport and to consider the need for developing guidelines in this respect, particularly as regards the extraterritorial implications of national legislation". The Council subsequently approved Recommendation 5 and a study was undertaken by the Secretariat with the assistance of a group of experts drawn from Contracting States and international organ- izations. The study led to the development of guidance material consisting of a number of specific guidelines for States, accompanied by explanatory comments, and a model clause for potential inclusion in bilateral air transport agreements. After examination by the Air Transport Committee in September 1988, the Council decided in Noxember 1988 that the guidance material should be issued to States. While in no way binding on States, the guidance would assist them in the avoidance or resolution of conflicts over the application of national competition laws, policies and practices to international air transport. The guidance material is presented in this circular, accompanied by an appendix which provides some historical and descriptive information on interrelationships between international air transport regulation and the application of competition laws, policies and practices to such transport. In addition to providing immediate guidance to States, this Circular will serve as a reference for the 27th Session of the Assembly in September 1989 when it considers the issue of the application by States of national competition laws to international air transport.

able of Contents Page Introduction ................................................................. 1 Guidelines ................................................................... 2 Model Clause on Competition Laws ............................................ 7 Appendix .................................................................... 9 ii

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