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COMPETITION LAW
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they give service to. This is usually realized through code sharing
agreements.
It is also emphasized that another significant issue is related to the
tariffs and flight frequencies. The main products in the airline industry
are tariffs and flight frequencies, which are the determinant factors for
passengers to choose a specific airline company. In this case, the alliances
are the most suitable instrument for providing a rise in the flight frequency.
Serving to larger number of routes shall make the airline company more
attractive and preferable for all passengers.
The Board reached to the conclusion that the first affirmative
condition of the exemption is satisfied by taking into consideration the
results of the cooperation on the notification issue, by providing the
airlines more global service network, an significant increase in the flight
options to offer to the consumers, an important cost efficiency key for the
economics of scope and concentration.
Consumers’ Benefit
Pursuant to Art.4 of Competition Act, in order for a restrictive
agreement being exempted, the above mentioned improvements should
be reflected to the consumers in such a way that will help to improve
their interest and confidence to purchase. In this stage, the Board stated
that usually the decrease in the level of prices is evaluated as the benefit
of the consumers. However, Board also stated that other conditions
such as efficient services after sale, increase of product variety, the easy
accessibility for consumers to obtain the products, the availability for the
long term supply of products can also be evaluated within the terms of
consumer benefits.
One of the most important benefits of alliances and cooperation
of airlines for the consumers appears in the volume and quality of
services. In comparison of alliance and non-alliance airlines’ output,
it was analyzed that the member-partner- airline companies are able to
utilize their services without any interruption in a better comfort and also
significant rise appears in the number of their routes where the services
are provided.