Competition Law in Tourism

206 COMPETITION LAW IN TOURISM Moreover, Article 44 of the Convention also states that “The aims and objectives of the Organization are to develop the principles and techniques of international air navigation and to foster the planning and development of international air transport so as to: (...) (f ) Insure that the rights of contracting States are fully respected and that every contracting State has a fair opportunity to operate international airlines” and “(g) Avoid discrimination between contracting States” (Doc 7300). As of the signing of the Chicago Convention, these concepts have served as important guiding principles in the economic development of international air transport and have been interpreted and elaborated through bilateral air services agreements (ASAs) between the Member States. During decades following the signature of the Chicago Convention, the economic regulatory framework for international air transport, established through ASAs, was mostly determined by States, and competition between airlines was limited. The reduction by States of controls within the air transport industry – known as “liberalisation” or “deregulation” – has fostered competition between air carriers. Enhanced competition, in turn, has led many carriers to consider consolidation as a means by which to achieve economies of scale and scope and to respond to consumer demands for global networks.With heightened competition and consolidation also comes a higher risk of anti-competitive behaviour. In addition, to keep their national airlines competitive in a liberalised market, some Governments may be tempted to lend support to their airlines through means that could deny other States’ airlines a fair and equal opportunity to compete. Therefore, it is important that States apply competition law to air transport and continue discussions on safeguard measures and other actions in order to address unfair practices. 3. ICAO ASSEMBLY RESOLUTIONS The ICAO Assembly adopted a few Resolutions that have clauses dealing with competition, for instance, Assembly Resolution A38-14, “Consolidated statement of ICAO continuing policies in the air transport field”, which was adopted by the 38th Session, held in 2013, contains the following clauses. In its Appendix A, Section II, operative clause 2, the Assembly “Urges Member States to take into consideration that fair competition is an important general principle in

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