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EU plans to counter fierce Mideast and Asian airline competition
THE European Commission is weighing measures to counter what it thinks is unfair competition from non-EU air carriers, Reuters reports.
Europe's aviation industry, which contributes EUR110 billion (US$119 billion) to EU GDP, has been hit by the rapid expansion of the Gulf carriers and the rise of Asia as a major air traffic hub.
The commission as the EU executive has asked member state governments to empower it to start talks to revise and restrict air transport agreements with China, Turkey, United Arab Emirates, Kuwait and Qatar.
Gulf countries already stand accused by European carriers, Lufthansa and Air France KLM, of receiving unfair state subsidies. Emirates and Etihad reject the allegations, saying the European carriers are inefficient.
The fix-it "Aviation Package" presented by Transport Commissioner Violeta Bulc aims to improve connectivity in the 28-member bloc, tackle airports' capacity constraints and charges.
"It will keep European companies competitive through new investment and business opportunities, allowing them to grow in a sustainable manner," said Ms Bulc.
But private sector lobby, BusinessEurope, said it would prefer better implementation of previous aviation packages to ensure coordination and management of European airspace.
"The United States controls the same amount of airspace, with more traffic, at almost half the cost," said the lobby.
The other countries with which the commission wants to negotiate air transport agreements are Saudi Arabia, Bahrain, Oman, Mexico and the Association of Southeast Asian Nations.
Next year, the commission plans to issue guidelines on the law on ownership and control of EU airlines to give legal certainty to investors and airlines.
Europe's third-biggest budget airline Norwegian Air has, for instance, circumvented Norway's labour laws by basing some of its crew and jets in countries such as Spain and Thailand, while Ryanair has come under fire in some countries for using pilots employed through agencies, rather than directly with the carrier.
Europe's aviation industry, which contributes EUR110 billion (US$119 billion) to EU GDP, has been hit by the rapid expansion of the Gulf carriers and the rise of Asia as a major air traffic hub.
The commission as the EU executive has asked member state governments to empower it to start talks to revise and restrict air transport agreements with China, Turkey, United Arab Emirates, Kuwait and Qatar.
Gulf countries already stand accused by European carriers, Lufthansa and Air France KLM, of receiving unfair state subsidies. Emirates and Etihad reject the allegations, saying the European carriers are inefficient.
The fix-it "Aviation Package" presented by Transport Commissioner Violeta Bulc aims to improve connectivity in the 28-member bloc, tackle airports' capacity constraints and charges.
"It will keep European companies competitive through new investment and business opportunities, allowing them to grow in a sustainable manner," said Ms Bulc.
But private sector lobby, BusinessEurope, said it would prefer better implementation of previous aviation packages to ensure coordination and management of European airspace.
"The United States controls the same amount of airspace, with more traffic, at almost half the cost," said the lobby.
The other countries with which the commission wants to negotiate air transport agreements are Saudi Arabia, Bahrain, Oman, Mexico and the Association of Southeast Asian Nations.
Next year, the commission plans to issue guidelines on the law on ownership and control of EU airlines to give legal certainty to investors and airlines.
Europe's third-biggest budget airline Norwegian Air has, for instance, circumvented Norway's labour laws by basing some of its crew and jets in countries such as Spain and Thailand, while Ryanair has come under fire in some countries for using pilots employed through agencies, rather than directly with the carrier.
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