Stampa

ASSOVIAGGI/ALITALIA-VERALDI/ALITALIA


PRESS RELEASE



PRESS RELEASE

Two investigations of Alitalia for abuse of a dominant position


On 22 June and 6 July 2000 the Competition Authority resolved to institute two investigations into possible to abuses of a dominant position by Alitalia.
Firstly, Alitalia may have committed a competition law offence by offering travel agencies incentive systems for the distribution of air tickets regardless of the dimensions and the efficiency of the agencies. It would appear that the commissions are designed as a loyalty discount to travel agencies, to the detriment of Alitalia's domestic and foreign competitors. For other airlines are required to pay much higher commissions than Alitalia to make their tickets attractive because Alitalia's commissions increase in proportion to the volume of tickets sold. And on domestic routes, Alitalia has a particularly high percentage of ticket sales. The incentive schemes adopted by Alitalia might therefore act as an obstacle to competing airlines servicing both domestic and international flights from and to Italy.
Alitalia is also alleged to have abused its dominant position by charging unjustifiably high prices on the Milan-Lamezia Terme route. Alitalia has a monopoly on this route and the prices are significantly higher (on average 45 percent higher) than Alitalia's own fares for the Milan-Reggio Calabria route on which Alitalia competes against Air One. Profits per passenger on the Milan-Lamezia are substantially higher than on the Milan-Reggio Calabria route, for both full fares and discounted fares. Both investigations are expected to be completed by June 2001.

Rome, 18 July 2000