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Critical Analysis of Resolution 815 of IATA Under the Competition Act 2002

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Document pages: 11 pages

Abstract: This research paper makes an indepth analysis of Resolution 815 of IATA which has created buzz in the Air Transport industry through the lens of the Competition Act 2002.With the freight forwarders and cargo agents’ industry burgeoning in the aviation business, IATA has been trying to bring these areas under its regime too. It began forming Resolutions and Regulations for the freight forwarders and cargo agents in order to “standardize” them. In the guise of standardization, IATA has been trying to regulate the cargo agents working or willing to work with the member airlines through its Resolution 801 and 815. Resolution 801 has already been declared anti-competitive the courts of European Union. As a result, IATA formulated Resolution 815 especially for EU and India to avoid being caught in their Anti-Competitive laws. This Resolution has 3 parts (i) Indian Air Cargo Programme Rules; (ii) Cargo Intermediary Agreement between the Carrier and the cargo agent and freight forwarders; (iii)General rules and conditions relating to the Cargo agent and Agency Administrator. This paper analyses whether Resolution 815 will stand the test of the Competition Act 2002. The paper covers pertinent questions like: (i) Is IATA trying to regulate cargo agents?; (ii) Does IATA have power to regulate cargo agents?; (iii) Does the Resolution pass the tests of Indian Competition law?; (iv) Does this Agreement amount to cartelisation and abuse of dominant position? This analysis is important because Resolution 815 is going to be enforced in the near future and signing it may prove detrimental to the cargo agents who are likely to be exploited by the airliners through this Resolution.

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