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NEWSLETTER 2011

170

In this scope, the Board stated that the provisions regulated under

Art.2 of the Partnership Agreement with the headings of “Management

of the Partnership” and “Cooperation Fields” are restrictive in nature

for competition. Thus, the above referred provisions states that the

distribution, qualification programs, products, pricing, income planning,

sales and marketing activities of airlines who are in a competing position

to be coordinated and the same to be realized for the cargo services.

Partnership Agreement also provides the inclusion of AZ in the joint

venture and the cooperation in cargo operations.

Pursuant to Art.14 of the Partnership Agreement, a set of rules is

introduced for the cooperation of AFKL andAZ in their sales organizations

and policies.

The Board stated that in order to grant an individual exemption to

the relevant agreements, which are in nature restricting competition, the

two affirmative and two negative conditions stated within Art. 5 of the

Competition Act should be both satisfied. Thus, the Board evaluated each

condition.

Providing New Developments and Improvements, or Economic or

Technical Development in the Production or Distribution of Goods

and in the Delivery of Services

The Board stated that the system, which envisages the unification

of networks in order to gain myriad betterment and advantages in terms

of traffic, geographical distribution and market share to the airlines in

alliance, also increases the concentration by the unification of traffic

volume within the said networks. The basic mechanism herein is

determined as structuring of a suitable network for central and hub-spoke

system. In this case, it is ascertained that the improvements made for

the feeder spokes enable the flights to be made without delays, increase

enplanement numbers by flying aircrafts with a larger seating capacity

in the feeder spokes and hence reduce overhead costs for per passenger.

Another advantage can be seen in the stage of entrance into a new

market. Thereby, by the courtesy of alliances, the airlines may enhance

their networks without the need for increasing the number of destinations