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ALIADRIATICA/ALITALIA (Start of full phase investigation)


PRESS RELEASE



The Italian Competition Authority has begun a proceeding against Alitalia to investigate alleged violation of Section 3 (abuses) of Law no.287/90.

The investigation, which deals with the activities in the domestic passenger air transport, has been initiated, following a complaint of Associazione Consumatori Utenti situated in Lamezia Terme (in the province of Catanzaro) on behalf of Aliadriatica airline (which has subsequently changed its name to Air One), as well as on the basis of the facts which emerged during the hearing of the representatives of Meridiana, Aliadriatica and Air Dolomiti held on July 12th, 1995 by the Transport Committee of the Chamber of Deputies.

In particular, Alitalia, in consequence of administrative provisions which empower the airline to manage the slot clearance, would have prevented new rivals from providing services on certain domestic routes in order to maintain its own dominant position. If and when the alleged violation will be ascertained, Alitalia's discriminatory conduct will highlight the incompatibility between the slot clearance activity and the supply of service for the passenger air transport. It is to be noted that Directive no. 95/93/EEC provides for the creation of a coordination body that will be in charge of managing the slot clearance activity. The current situation is that, until this Directive is enacted, Alitalia will continue to carry out this activity.

A further allegation is that Alitalia has overlapped its own flight departure times with those of its rivals, Meridiana and Aliadriatica, so as to drive them from the market.

Finally, it is alleged that Alitalia has hampered the opening of the national markets to competition by imposing travel agencies not issue tickets for rival airlines.

The Authority points out, therefore, that Alitalia's behaviour could constitute an abuse of dominant position in violation of Section 3 of the Competition Act.

The investigation is to be concluded by September 26th, 1996.