Khaleej Times

EU to revamp aviation competitio­n law

- Julia Fioretti Reuters

brussels — The European Commission is set to revamp a law enabling it to impose duties on nonEU 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 European Union executive aims to guarantee fair competitio­n between airlines in the bloc by tackling such business practices by foreign airlines which cannot be addressed through open skies agreements.

These include 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 Dhabibased Etihad.

Lufthansa CEO Carsten Spohr repeating last week that he rejected subsidies as he signed a catering deal and maintenanc­e project with Etihad. 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. —

 ?? — Reuters ?? Under the draft proposal, an EU member state, airline or airline associatio­n will be able to submit a complaint to the Commission.
— Reuters Under the draft proposal, an EU member state, airline or airline associatio­n will be able to submit a complaint to the Commission.

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