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Moreover, the marketing promotion for rewarding flight points
gained from any member of alliance can be converted into a ticket within
the broad alliance network is regarded as an important advantage and
inducement for the passengers.
On the other hand, the increase in the connected services capacity also
enables the services to be provided in an uninterrupted way. Continuous-
non-stop-journeys can only be achieved by the coordination of the flight
tariffs together with the coordination of baggage and ground handling
services provided in relevant airports.
The Board is also in the opinion that the efficiency mechanism
strengthened by the economics of scope and concentration which are
created by the alliances, is reflected to the consumers as low ticket prices.
Pursuant to the Board’s opinion in this frame, the efficiencies brought
by the alliance practices shall be duly reflected to the consumers and
thereby, high number of consumers would be reachable.
Allowing Competition for Significant Part of the Relevant Market
The Board has separately evaluated this condition for the two relevant
product markets.
Concerning the market for transportation of passengers by scheduled
flights, first of all it is stated that the main indicators for the elimination
of competition in a route are defined as the decrease in the frequency of
the flights, the increase in the prices arising out of the established market
power and the increase of exists from the relevant market.
At this point, the Board made individual examinations for each route
defined under the relevant product market and as conclusion determined
that the frequency of the flights would not decrease, in case of any
increase in the ticket prices; consumers shall tend to choose other airline
companies and no increase in the exits from the market is expected. In the
light of these evaluations, the Board decided that the competition is not
eliminated in a significant part of a relevant market.
As for the air-cargo transportation market, the Board is the opinion that
the inclusion of AZ in the AFKL Delta alliance shall not have a negative
effect on the competitive structure in terms of its total market share.