COMPAT upholds CCI order in IATA case related to a/c system

The Competition Appellate Tribunal has disposed of a plea seeking to restrain implementation of International Air Transport Association's (IATA) cargo accounts settlement system.
The tribunal has upheld fair trade regulator CCI's ruling that had rejected Air Cargo Agents Association of India's plea in this regard.
The Air Cargo Agents Association had sought an injunction against implementing IATA's Cargo Accounts Settlement System (CASS).
According to COMPAT order, dated March 25, respondent's learned counsel had submitted that CASS "was only a pilot project and was not compulsory at all and it was completely voluntary".
In its ruling in July 2013, Competition Commission of India (CCI) had said that airlines and agents are not mandated by IATA resolutions to participate in CASS.

IATA in a statement today said it welcomes COMPAT's order recognising that CASS operates within the bounds of India's competition law.

"With the order, COMPAT has disposed of an injunction on CASS by the Air Cargo Agents Association of India (ACAAI) following ACAAI's withdrawal of their appeal," it added.
CASS, which is operational in about 81 countries, simplifies the billing and settling of accounts between airlines and cargo agents. It is being used in Australia, France, Pakistan and the United Kingdom, among other nations.
"In order to derive maximum economic benefits from the anticipated traffic growth, the Indian air cargo community needs to modernise its processes and enhance its efficiencies. CASS is a tool available for airlines and cargo agents," the statement said.

Further, IATA said "since the launch of the CASS India Pilot in May 2013, there has been an increase in the number of participating cargo agents, with more airlines and agents expressing active interest to participate".