IATA files formal EC complaint against parts suppliers

The International Air Transport Association has become a formal complainant in a European Commission investigation into alleged anti-competitive behavior on the part of aviation equipment manufacturers, but is not asking for damages in the case.    The International Air Transport Association has filed a formal complaint in a European Commission investigation into alleged anti-competitive behavior on the part of aviation equipment manufacturers, according to a statement from the trade group.
   IATA said the European Commission’s Directorate General for Competition in 2015 sent a survey to industry stakeholders “requesting information to validate claims of abuses of dominant positions by original equipment makers (OEMs) with respect to their control of aftermarket repairs, including parts and services.”
   The association noted that as a complainant, IATA is not making any claims for monetary damages or any other forms of compensation for past conduct in the case.
   “This is an area of deep concern for our members. There are relatively few equipment vendors and our members are frustrated that there is little flexibility in negotiations for aftermarket services,” said IATA Director General and CEO Tony Tyler.” Airlines do not have the leverage to resolve these concerns individually. So IATA is fulfilling its role as their global trade association and representing their interests as a complainant.
   “Our focus is on the future. Our members want to be able to negotiate contract terms more effectively and with more options than the OEM community will entertain today,” he added. “Our aim is to help re-balance the relationship so that airlines and OEMs can work together as true business partners in a normal commercial relationship.”
   Tyler emphasized that although this is an important issue in the relationship between airlines and OEMs, it is only one aspect of that relationship.
   “OEM revenues are airline costs, so there is a natural tension on this issue,” he said. “But airlines are and will continue to be important customers for OEMs. And we all have major common interests in our dedication to the continuous improvement of safety, efficiency and sustainability.
   “Whatever conclusion the investigation comes to, at the end of the process there will be greater clarity on the rules of the game and how they should be applied. That will be a good development for all involved.”