IATA has applied for a three month extension to finalise its response to the Australian Competition and Consumer Commission (ACCC) in regard to the current authorisation (immunity) for the operation of the Australian Cargo Agency Program.

It is our understanding that IATA have made all the necessary amendments and changes to satisfy its airline members that the program can operate without immunity and that it would not contravene or be open to dispute within trade practice law.

The program will still incorporate the CASS payment system and, whilst there may be some amendments which, together with other changes to the program would remove
anti-competitive elements, the basic methodology will be preserved.

It is now for all of the airline members of IATA worldwide to decide whether to approve the proposed response before it can be submitted to the ACCC and if that is achieved the current immunity will be removed.

The role of the IATA Cargo Executive Council (of which AFIF is a member) and ACCC would then be to monitor the program and ensure that competition was maintained.

Should all of the IATA airline members fail to approve the proposal then IATA would need to reconsider its position and decide whether an amendment was required, or a new authorisation sought to provide immunity from Trade Practice Law in regard to the Cargo Agency Program.

If any member wishes to discuss any aspect of this advice, please contact the undersigned.

Thank you and regards

Brain Lovell

Cheif Executive Officer
Australian Federation of International Forwarders Ltd (AFIF)

Suite 403, Level 3
152 Bunnerong Road
Eastgardens
NSW 2036
Tel: (61 2) 9314 3055
Fax: (61 2) 9314 3116