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COMPETITION LAW

169

venture enables the passengers, who regularly travel from Italy to North

America or over Italy from North America, to benefit from the advantages

provided by the joint venture. The Board is in the opinion that from this

point of view, the actual content of the joint venture is not altered by the

inclusion of AZ.

Furthermore, pursuant to Art.16 of the Partnership Agreement, it is

envisaged that AFKL and AZ shall enter into an agreement providing

for the mutual cooperation for the cargo operations. According to the

Cargo Agreement, AFKL shall be responsible from the marketing, sales

and pricing of the cargo capacity in the AZ passenger aircrafts where

the services are provided by AZ and which flies in the international

and intercontinental routes. Turkey shall be among the countries where

AFKL shall be the commercial representative of AZ, since AZ passenger

aircrafts provide service in Turkey.

Relevant Market

The Board defined the relevant product markets as “

the market for

transportation of passengers by scheduled flights

” and “the market for

air-cargo transportation”.

The relevant geographic market for the transportation of passengers by

scheduled flights market is defined as “Istanbul-Amsterdam”, “Istanbul-

Paris”, “Istanbul-Roma”, “Istanbul-Miami”, “Istanbul-Atlanta”, “Istanbul-

NewYork”, “Turkey-South America”, “Turkey-Africa” and “Turkey-Asia”

routes and for air-cargo transportation market it is defined as “Turkey-

North America” route.

Evaluation of the Individual Exemption

Pursuant toArt.4of theActNo: 4054 (“CompetitionAct”) “

Agreements

… between undertakings, … which have as their object or effect or likely

effect the prevention, distortion or restriction of competition directly or

indirectly in a particular market for goods or services are illegal and

prohibited

.” The Board determined that AFKL–Delta and AZ, who are

undertakings in terms of the application of the Competition Act, are rival

competitors in the herein determined relevant markets for the transportation

of passengers by scheduled flights and air cargo transportation.