LUFTHANSA SAYS FARE POLICY IN LINE WITH EC RULES
The West German airline, Deutsche
Lufthansa AG, believes the way it decides fares is in line with
European Community (EC) guidelines despite an official probe, a
company spokesman said today.
    The Federal Cartel Office in West Berlin is investigating
whether agreements reached by European airlines over fares are
a breach of EC regulations on competition.
    Hubertus Schoen, the Cartel Office's spokesman, said the
investigation had been running for some weeks.
    A spokesman for Lufthansa told Reuters: "Lufthansa presumes
that the way we decide fares corresponds with EC regulations."
    Airlines did not traditionally have to comply with a clause
in the Community's treaty forbidding companies in member states
from reaching accords likely to hinder free competition.
    However, Schoen said that last year the European Court of
Justice had ruled that this clause should also apply to air
traffic. The Cartel Office"s probe came in the wake of this.
    The Office had not yet officially contacted Lufthansa, but
Schoen said the airline would be asked for information about
the way fares were decided.
    It would then be decided if the practice was a breach of
article 85 of the EC treaty.
 Reuter
