eu sharpens competition tools to face gulf carrier challenge
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

EU sharpens competition tools to face Gulf carrier challenge

Egypt Today, egypt today

Egypt Today, egypt today EU sharpens competition tools to face Gulf carrier challenge

An Airbus A380 of Lufthansa parked at Frankfurt Airport. The proposal is likely to stoke
Brussels - Arab Today

The European Commission is set to revamp a law enabling it to impose duties on non-European Union (EU) airlines or suspend their flying rights if it finds they have caused injury to European airlines, as it seeks to counter rising competition from Gulf carriers.

In a draft proposal seen by Reuters, the EU executive aims to guarantee fair competition between airlines in the bloc by tackling unfair business practices by foreign airlines and their governments which cannot be addressed through open skies agreements.

These include illegal government subsidies or favourable treatment when it comes to slot allocation, ground handling services, airport charges and refuelling, among others.

The proposal is likely to stoke tensions between European legacy carriers — hit by increased competition on long-haul routes and shifting traffic flows to Asia — and the three major Middle Eastern airlines.

Qatar Airways, Emirates and Etihad Airways have faced accusations of receiving illegal state subsides, which they deny.

 

The Commission has come under heavy pressure from France and Germany as well as their flag carriers, Air France KLM and Lufthansa, to do more to tackle the challenge posed by the Gulf airlines.

Lufthansa has started cooperating with Abu Dhabi-based Etihad. But the issue of unfair competition has not gone away, with Lufthansa CEO Carsten Spohr repeating last week that he rejected subsidies as he signed a catering deal and maintenance project with Etihad.

“It is not a secret that Lufthansa has always been and remains an opponent of state subsidies,” he said at a press conference in Abu Dhabi.

The draft law would replace the current one, adopted in 2004 to counter unfair pricing practices by US airlines on transatlantic routes. It has never been used and is widely considered to be ineffective.

Under the draft proposal, an EU member state, airline or airline association will be able to submit a complaint to the Commission, which will open an investigation if there is “prima facie” evidence of a practice causing injury or “threat of injury” to one or more EU carriers.

During the probe, which should be concluded within two years, the Commission may carry out investigations in the third country concerned if the government and foreign carrier have given their consent.

Where the Commission concludes that a European carrier has suffered injury or threat of injury because of unfair practices from a country or airline, it may impose duties or suspend “concessions, services or rights of the third country air carrier” or the rights of the third country.

However, the Commission will not adopt regressive measures if their impact on EU citizens or interested parties “would be negative and clearly disproportionate compared to any advantages given to the Union air carrier(s) concerned,” according to the document.

At the same time, major US carriers American Airlines Group, Delta Air Lines and United Airlines have resumed their campaign against the Gulf carriers by pressuring the new US administration to renegotiate its open skies agreements with the United Arab Emirates and Qatar.

Qatar Airways, Emirates and Etihad Airways, have staunchly refuted the allegations of receiving illegal government subsidies and say US and EU airlines are being protectionist.

US aviation executives met US President Donald Trump on Thursday.

While the proposal is mainly envisaged for dealing with disputes with countries which do not have an open skies agreement with the bloc — such agreements typically have fair competition and dispute settlement provisions — it will not preclude the Commission from opening an investigation where there is an air services agreement.

Such agreements, at the moment often done on a bilateral basis between the governments of two countries, set out where and how often foreign airlines could fly into the EU, and vice versa.

The Commission received a mandate to start negotiations on air services agreements with Qatar and the United Arab Emirates last year. So far, discussions have only started with Qatar.

The draft may still change before it is formally published, expected on April 26, and will require the agreement of the European Parliament and member states before becoming law.

A spokeswoman for Etihad declined to comment. No spokesperson from Emirates could be reached for comment before going to press

source : gulfnews

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eu sharpens competition tools to face gulf carrier challenge eu sharpens competition tools to face gulf carrier challenge



GMT 15:49 2011 Friday ,10 June

Oil firm wins injunction against Greenpeace

GMT 10:27 2015 Monday ,06 July

Mini to launch ‘Clubman’ in 2016

GMT 17:21 2011 Wednesday ,23 February

Lampard Desperate To Win The Champions League

GMT 10:13 2018 Tuesday ,09 January

Barcelona to unveil 160m Coutinho

GMT 23:03 2017 Monday ,16 January

Bank of Korea: Money Production Cost Rise in 2016

GMT 20:33 2011 Friday ,06 May

Asad\'s army arrests all men over 15 in Daraa

GMT 11:55 2011 Tuesday ,29 November

Ultrabooks could save the PC

GMT 13:02 2012 Saturday ,01 September

Zombies and Morons compete

GMT 07:31 2017 Tuesday ,20 June

Sisi keen on attaining unity

GMT 11:50 2015 Saturday ,26 September

The Library of Fragrance announces January launches

GMT 06:28 2014 Saturday ,18 October

Asian Junior Volleyball tourney kicks off in Bahrain

GMT 13:31 2016 Saturday ,13 February

Greek farmers clash with police

GMT 07:40 2012 Friday ,06 July

Deeds, not words, matter the most

GMT 14:16 2016 Wednesday ,23 November

Gigi sorry for ‘racist’ Melania Trump impression

GMT 22:52 2011 Tuesday ,26 April

Nigeria prepares for parliamentary elections

GMT 20:35 2016 Tuesday ,04 October

Paris climate deal: EU backs landmark agreement

GMT 10:50 2016 Thursday ,01 September

India's Reliance announces launch

GMT 09:34 2016 Friday ,30 September

Rosetta spacecraft set for final comet crash landing

GMT 06:27 2017 Wednesday ,28 June

Rakeen Georgia ex-CEO faces trial in Georgia
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday