ABSTRACT
There is no universal framework for securing fair competition in the aviation sector. The EU was the first to develop an advanced trans-national system of competition laws to support undisturbed operation of its internal market. EU competition law is based on four principles. First, prohibition of agreements or concerned practices between undertakings that may affect trade between EU member states by preventing, restricting or distorting competition. Second, prohibition of abuse of dominant position. Third, control of concentrations between undertakings; and finally prohibition of any kind of state aid distorting competition. In particular the three strategic mega-alliances (oneworld, Star Alliance, Sky Team) have all received competition clearance from the European Commission. In UK-third party relations the removal of EU vertical agreements will also affect competition clauses. Notwithstanding the competition provisions in horizontal and vertical EU aviation agreements and in bilateral air services agreements, the EU has concluded with third parties a number of cross-sector agreements dedicated to fair competition.
