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IATA sets interlined fares; extends lifeline as European Commission ends tariff conferences.

Article Excerpt
The travel industry has given a qualified welcome to news that passengers can continue to interline among International Air Transport Association carriers next year thanks to IATA's new "flex fares." Interlining--the use of multiple carriers for different segments of a trip, other than between members of the same airline alliance---was under threat after the European Commission recently announced it will end the right of carriers to set fares jointly at tariff conferences without prosecution for anticompetitive behavior.

IATA's solution is to set fares automatically by calculating the average fully flexible fare on each route, then charging a premium for the benefits of interlining, which include the ability to switch from one carrier to another on the same route, using one ticket for a single journey involving multiple carriers and not having to recheck bags on journeys involving multiple carriers.

Although IATA has been applauded for its swift action to rescue interlining from oblivion, it continues to attract criticism from travel agents for the slowness of its reform on several other issues. Gaining pan-European agency accreditation has become easier, but travel agents said barriers remain. They also reported...

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