The European Commission yesterday raised concerns over the way Arabian Gulf carriers operate in Europe as it published a new aviation strategy.
It called for comprehensive agreements between the European Union and GCC states based on common rules and transparency.
“European aviation is facing a number of challenges and today’s strategy sets out a comprehensive and ambitious action-plan to keep the sector ahead of the curve,” said the EU transport commissioner Violeta Bulc.
The publication of the strategy by the EU executive represents the opening salvo from the transport commissioner in what could be a protracted process to reshape aviation in Europe.
It poses a potential threat to Gulf carriers who fear it could curb their expansion there as some of their European rivals accuse them of benefiting from unfair state subsidies.
In a memo accompanying yesterday’s announcement, the EC said that the UAE had more direct traffic with the EU than China, India and Japan combined.
It also said that the total number of seats available on scheduled flights between the EU and the six GCC states has increased to 39 million this year from 12 million in 2005.
The EC said it would issue interpretative guidelines on the application of a key 2008 regulation covering the ownership and control of EU airlines.
This could have implications for Abu Dhabi-based Etihad Airways, which has taken stakes in several ailing European carriers including Alitalia and airberlin.
Etihad was not immediately available for comment.
“While the additional connections provided by the Gulf airlines are welcome – there are concerns regarding the conditions under which they operate,” the EC said.
“Comprehensive aviation agreements between the EU and the GCC states would be the right way forward to bridge the interests of both sides by creating conditions that will allow further market development and growth based on common rules and transparency.”
This would represent a move away from the existing bilateral agreements between Gulf states and individual European countries which regional carriers are keen to preserve.
Emirates drew attention to this point in its response to the transport commissioner’s proposals.
“Competition-related issues are already covered under existing sovereign bilateral air service agreements, as well as existing EU regulation. Therefore we find it interesting that rather than use these tools to address specific grievances, the European Commission is instead looking at a new EU-level policy or updated instrument,” the Dubai-based airline said.
“We would also be interested to see what such a policy would mean for state-supported airlines in Europe, as well as existing antitrust immunised joint ventures between European and non-European carriers and other ‘protected’ commercial arrangements of this nature.”
• Read the full Emirates statement here
The aviation industry directly employs up to 2 million people in the EU and contributes €110 billion (Dh437.05bn) to Europe’s economy.
Aviation traffic in Europe is predicted to reach 14.4 million flights by 2035, about 50 per cent more than in 2012. But much of the current growth momentum is coming from the big three Gulf carriers, threatening rivals such as Air France-KLM and Lufthansa.
At the same time, traditional global hubs including London Heathrow, Paris Charles de Gaulle and Amsterdam Schiphol Airport face competition from the emerging hubs of Dubai, Abu Dhabi and Doha as the Gulf cities draw in more long-haul travel between Asia, Europe and North America.
The trend is leading to a major shift in global air travel that some European carriers perceive as an existential threat.
The transport commissioner will present the aviation strategy to the European Parliament and the Council of the EU later this month.
scronin@thenational.ae
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