commiss decis juli complianc air fare requir articl council regul eec eec commiss european commun regard treati establish european econom commun regard council regul eec juli fare schedul air servic articl thereof govern unit kingdom request commiss letter date april regist commiss examin pursuant articl regul eec number fare increas file commun air carrier rout unit kingdom unit kingdom withdrew request relat inbound fare letter date juli detail examin inform cost revenu provid air carrier concern request commiss led conclus base criteria explain annex iii adopt decis articl air fare list appendix decis compli articl regul eec articl air fare list appendix decis compli articl regul eec fare serv refer fare subsequ season member state concern fulfil oblig articl regul request measur order compli oblig inform commiss articl decis address compet author belgium denmark germani greec spain franc itali luxembourg portug unit kingdom commun air carrier sabena sa lufthansa olymp airwai iberia air franc alitalia luxair tap air portug british airwai brussel juli commiss karel van miert member commiss oj annex fare commiss examin pursuant articl regul eec led conclus complianc criteria laid articl rout airlin tarif outbound inbound lhr cph ba man cph ba lhr bru ba bfr man bru ba lhr fco ba lhr lin ba man lin ba lhr psa ba lhr trn ba lit lhr vce ba lhr blq ba lit lhr lux ba lfr lhr ath ba lhr mad ba lhr bcn ba lhr agp ba esp lon li ba lgw fao ba man cdg ba lhr nce ba lhr nce ba lhr bod ba lhr fra ba lhr du ba lhr ham ba lhr cgn ba lhr haj ba lhr str ba lhr bre ba man du ba man fra ba lhr muc ba lhr txl ba cph lhr sk dkk cph man sk dkk bru lhr sn bfr bru man sn bfr fco lhr az lin lhr az lin man az lit psa lhr az trn lhr az lit vce lhr az blq lhr az lit ath lhr oa grd ath lhr oa grd mad lhr ib bcn lhr ib agp lhr ib esp li lon tp fao lgw tp cdg bhx af cdg man af nce lhr af nce lhr af bod lhr af fra lhr lh du lhr lh ham lhr lh cgn lhr lh haj lhr lh str lhr lh bre lhr lh muc lhr lh fra bhx lh du man lh fra man lh du bhx lh txl lhr lh annex ii fare commiss examin pursuant articl regult eec led conclus complianc criteria laid articl rout airlin tarif outbound inbound lhr cph ba dkk man cph ba dkk man bru ba bfr lhr fco ba lit lhr lin ba lit man lin ba lit lhr psa ba lit lhr vce ba lit lhr ath ba grd lhr ath ba grd lhr mad ba esp lhr bcn ba esp bhx cdg ba bhx du ba bhx fra ba fco lhr az lit lin lhr az lit psa lhr az lit vce lhr az lit lux lhr lg lfr mad lhr ib esp mad bcn ib esp definit appendix annex ii regul eec decis oper ratio relationship revenu cost written procedur point articl regul eec airlin member state oblig provid inform commiss annex iii complianc air fare requir articl regul eec introduct note date april receiv commiss compet author unit kingdom formal request commiss examin number air fare compli articl regul air fare compli articl regul air fare file british airwai behalf sabena tap air franc sa lufthansa iberia alitalia olymp airwai luxair summer season addit commiss ask examin member state concern carri respons articl reguat note juli unit kingdom author withdrawn request inbound fare examin commiss oblig commiss member state air carrier gener regul eec establish system doubl disapprov air fare exce refer fare area propos fare prevent enter forc member state concern disapprov safeguard built regul state submit matter commiss decis member state oblig approv fare articl relat criteria defin articl excess high disadvantag user unjustifi high view user unjustifi low view competit market situat articl establish air fare relat long term fulli alloc relev cost applic air carrier commiss articl commiss receiv request inform member state air carrier concern give possibl submit comment make letter commiss decid dai receipt air fare remain forc examin commiss view situat gulf crisi decid air fare remain forc examin period final commiss decid air fare question relat long term fulli alloc relev cost applic air carrier member state air carrier addit oblig pursuant articl regul eec member state pursuant articl oblig make commiss inform requir carri scrutini situat oblig appli air carrier criteria articl gener air fare long term fulli alloc relev cost examin concept long term short term fluctuat cost account cost revenu account inform suggest usual short term variat fulli alloc relev cost cost relat air fare alloc fulli rout question margin approach commerci reason accept hand cost relat air fare consid rout cost instanc directli attribut cost rout question account cost includ fuel airport charg flight crew current account practic follow approach alloc indirect cost rout complex inevit number assumpt order alloc cost rout alloc cost specif rout fairli accur account method exist air carrier reason prefer specif system commiss task set method correct air carrier method chosen consist control make indirect cost alloc commiss proce basi breakdown cost individu air carrier fare type cost point make number assumpt order calcul cost relat specif fare type intern flight fare type divid fulli flexibl fare class busi economi promot fare eurobudget pex apex differ respect servic passeng seat pitch meal varifi passeng servic regard condit attach intra european flight lowest fulli flexibl fare lowest fare restrict consid term regul eec refer fare request present unit kingdom aim examin fare type case british airwai call club fare consid lowest fulli flexibl fare cost produc seat differ greatli class premium class offer room seat cabin servic cost differ estim introduc simpl assumpt real differ regard cost level fare type result condit attach air fare lack normal fulli flexibl economi fare club carri penalti passeng decid reserv opposit true promot fare mean air carrier calcul load factor consider higher promot fare fulli flexibl fare statist bear promot fare small percentag show higher percentag expect fulli flexibl fare fact load factor realis fulli flexibl fare realiz promot fare figur natur assum air carrier oper equip effici yield manag system conclus state cost alloc good degre accuraci rout assumpt made reason load factor order calcul cost relat specif fare type note air fare addit criteria regul eec examin basi relev competit rule relationship air fare cost final measur comani profit compani level past year air carrier realiz profit tax gener recogn profit margin reason oper ratio cover financi charg provid return equiti present air carrier achiev ratio appli directli rout rout basi accept normal air carrier network includ good rout bad degre cross subsid rout justifi rout basi margin excess bring accept oper ratio addit reckon margin error alloc cost reson justifi oeprat ratio air fare approach correspond threshold earlier case commiss sterl airwai case order calcul oper ratio air fare make assumpt reason load factor commiss assess load factor instanc significantli lower air carrier achiev acknowledg reason albeit cautiou order carri assess element consid calcul fare type or attach profit rout circumst import assess trhe compat air fare rout question port rout perform rout run loss cover cost assumpt calcul correct exclud load factor achiev specif econom difficult rout possibl downsiz equip technic reason limit similar consider valid rout develop case poor rout perform outweigh conclus base calcul fare type relat poor rout perform compat conclus specif fare high case cross subsidi fare type sens low price elast fulli flexibl fare busi travel financ artifici low promot fare leisur travel situat distort competit carrier accept poor profit rout lead air carrier optim incom increas fare market segment low price elast demand difficult accept competit exist fulli flexibl fare situat competit exist promot fare charter traffic import circumst low promot fare schedul airlin constitut predatori behaviour account develop longer term commiss gener approv fare oper ratio rout show neg result season fare high fare type disapprov approach practic view fact inform rout air fare profit commiss servic written air carrier member state concern ask provid inform extrem difficult time consum commiss obtain inform airlin due turbul caus gulf crisi carrier problem provid updat data cost establish calcul method correspond requir regul commiss approach practic point note situat preced season examin gener develop fare observ oper ratio diminish increas profit rout note competit situat number air carrier activ rout question air fare calcul exclud effect short term fluctuat commiss flexibl viewpoint gener disapprov fare threshold oper ratio result rout concern neg season examin cost carri sole basi inform provid individu account system air carrier concern includ breakdown cost categori air fare instanc differ significantli inbound outbound separ analysi carri fare alloc relev cost airlin difficulti provid updat datea account system date unabl provid cost data rout rout basi commiss flexibl view accommod difficulti number estim assumpt airlin told commiss factor attribut higher percentag total cost busi class seat relat cost passeng relat cost low commiss improv methodolog decis cooper expert airlin member state present propos commiss arriv conclus built margin error account uncertainti threshold appli flexibl manner number rout show extrem high busi class neg result rout mean airlin attempt low fare leisur traffic cross subsid busi traffic situat distort competit accept rout competit exist fulli flexibl fare situat competit exist promot fare charter traffic import fare high fare type disapprov inform furnish airlin rout perform neg season case interlin air carrier receiv full fare prorat part account calcul oper ratio rout assum situat access rout limit capac problem competit sever restrict rout question case heathrow gatwick fare disapprov criteria mention accept suffici competit rout gener carrier market share provid carrier act price leader fact rout criterion appli rout fare approv high carrier market share servic rout freedom right price leadership recal examin concern fulli flexibl fare time consid high europ context difficult convinc competit rout air carrier question refer back agreement reach iata justif air fare compani told commiss match fare competitor articl regul eec articl lose sens commiss accept match higher fare level justif cost related refer articl fare examin put forc summer season heavili influenc neg effect gulf crisi fact rout calcul basi real data provid airlin show case remark drop compar previou season method mention neg rout result consid maintain longer period season articl regul expressli refer long term fulli alloc relev cost summer season approach case effect gulf crisi account commiss opinion gulf crisi neg effect longer term regard level laod factor decid suspend tariff examin commiss expressli refer gulf crisi consist decis account difficult situat aviat industri face commiss check fare disapprov method appli oper ratio recalcul basi load factor limit inform provid airlin sever reduc summer busi class commiss appli tariff load factor promot traffic load factor result commiss except approv total fare rout affect gulf crisi normal circumst threshold light forego consider commiss decid accept fare fare type oper ratio abovement methodolog rout run loss cover cost indic cross subsid busi class discount fare assum case oper ratio rout season fare type high rout oper carrier market share fourth carrier condit act price leader case assum workabl competit rout question virtu market fare put pressur high fare load factor sever reduc effect gulf crisi drawn fare type oper ratio threshold