10.9.2002 Official Journal of the European Communities L 242[25 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 5 July 2002 relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA Agreement (COMP[37.730 — AuA|[LH) (notified under document number C(2002) 2502) (Only the German text is authentic) (Text with EEA relevance) (2002/746[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to the Agreement on the European Economic Area, Having regard to Council Regulation (EEC) No 3975/87 of 14 December 1987 laying down the procedure for the application of the rules on competition to undertakings in the air transport sector ('), as last amended by Regulation (EC) No 2410/92 (3), and in particular Article 5 thereof, Having regard to the notice (}) published pursuant to Article 5(2) of Regulation (EEC) No 3975/87, Having regard to the notice (*) published pursuant to Article 16(3) of Regulation (EEC) No 3975/87, Having consulted the Advisory Committee on Agreements and Dominant Positions in Air Transport, Whereas: 1. INTRODUCTION (1)  On 10 December 1999 Deutsche Lufthansa AG (Lufth- ansa) and Austrian Airlines (together hereinafter called the ‘Parties’) notified under Regulation (EEC) No 3975/ 87 a cooperation agreement concluded on 19 October 374, 31.12.1987, p. 1. 240, 24.8.1992, p. 18. 193, 11.7.2000, p. 7. 356, 14.12.2000, p. 5. lLeLee ANEE 1999. The Parties aim to forge a lasting alliance by creating an integrated air traffic system built on close cooperation in commercial activities, marketing and operational activities. A framework agreement sets out the main features of the cooperation. In addition, the two companies have negotiated a number of more specific implementation agreements and a special pro- rate agreement defining their joint pricing policy. Under a ‘neighbourhood agreement’, they have created a joint venture for traffic between Germany and Austria, with profits and losses being shared. Pursuant to Article 5 of Regulation (EEC) No 3975/87, the Parties request an exemption under Article 81(3) of the EC Treaty and Article 53(3) of the EEA Agreement. On 11 July 2000 a summary of the application for exemption was published in the Official Journal of the European Communities pursuant to Article 5(2) of Regula- tion (EEC) No 3975/87. On 4 October 2000, pursuant to Article 5(3) of Regula- tion (EEC) No 3975/87, the Commission notified the Parties by letter of its serious doubts about the compati- bility of the agreement with the common market. On 10 May 2001 the Commission sent Austrian Airlines and Lufthansa its statement of objections, in which it notified the Parties of its preliminary assessment that the cooperation agreement between them could not be exempted under Regulation (EEC) No 3975/87.