Why do airlines on the same international route consult about fares before governments approve them?

The premise that airlines consult on fares to ensure government approval is a standard feature of international aviation regulation, rather than a deviation from it. Under the framework of air law, most international traffic rights are governed by bilateral agreements between states rather than a single multilateral treaty.1

These bilateral agreements typically establish the specific routes to be served, the capacity of the services, and the formal procedures for how fares and tariffs are submitted to the respective governments for approval. To streamline this process, these agreements often mandate that airlines operating on the same international routes consult with one another before presenting their proposed fares to the relevant government authorities.1

Many of these agreements designate the International Air Transport Association (IATA) as the specific body through which these industry consultations take place. This collaborative approach helps ensure that the proposed pricing structures align with the regulatory expectations set out in the bilateral agreements between the involved nations.1