MercoPress. South Atlantic News Agency

DAP fights Lan Chile.

Aerovías DAP officially requested air fare regulations warning that if nothing is done Lan Chile will consolidate 90% of the Chilean home market particularly punishing residents in extreme areas of the country.

Andrés Pivcevic from DAP made the formal presentation this week before the Chilean Anti monopoly Committee adding that the current re structuring of Lan Chile with Ladeco is contrary to the 1995 resolution authorizing their merger, and besides, infringes free competition conditions in the air passenger and freight market.

"With a reasonable air fare regulation system, depredatory practices, as we have seen in the past could be avoided and there would be a fair chance for independent operators", said Mr. Pivcevic.

"It's quiet simple for any company with 90% of the market to push aside challengers; we're only requesting that a similar legislation that guarantees competition in telecommunications is made extensive to air transport", indicated DAP's CEO.

Mr. Pivcevic stressed that an only domestic carrier can fix fares at its whim, under a monopoly situation, exposing residents in distant areas of the country dependent on air transport. If the Anti Monopolies Committee rules favorably DAP will reconsider its plans to resume air flights from Santiago to the extreme north and south of Chile.

Cheaper licenses and ITQ

Argentina's Federal Fisheries Council, FFC, approved a reduction in licenses fees for some species. Reductions according to the latest resolution can reach 40%, but are limited to Argentine companies, given the "current difficult situation in the fisheries industry".

The resolution which is aimed at encouraging "production activities" in the country will only apply to those species whose international prices have dropped considerably and have had an impact in the productivity of local fishing fleets and export values.

Similarly, and aiming at a further conservation effort, Argentina's Federal Fisheries Council introduced specific Individual Transferable Quotas, ITQ, for common hake (Merluccius hubbsi).

ITQ should enable more effective management guidelines since they severely limit individual catches. For example no individual, business or group can hold ITQ equivalent to more than 10% of the Total Allowable Catch, TAC, of any species.Surplus ITQ will be redistributed.

Controversy over prawn catches

Provincial representatives in the Argentine Federal Fisheries Cou