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Image header Agence Europe
Europe Daily Bulletin No. 11274
SECTORAL POLICIES / (ae) transport

Bulc to examine competition from Gulf airlines

Brussels, 13/03/2015 (Agence Europe) - At the Transport Council on Friday 13 March, Germany and France raised the issue of unfair competition from Gulf airlines, which apparently are heavily subsidised from the public purse.

The two countries, which would like to see a common strategy to deal with this matter, suggested a review of Regulation 868/2004 on protection against subsidisation and unfair pricing practices in air transport. They also proposed that the extension of traffic rights given to foreign airlines in Europe be accompanied by tougher checks. The French delegation indicated that the Franco-German initiative had received the support of the Netherlands, Belgium, Sweden and Austria.

European Transport Commissioner Violeta Bulc promised that this matter would be addressed as part of the aviation strategy that she is due to present before the end of the year. “We'll put that on the aviation package. Not only on Gulf carriers, but as well other states like Brazil and China” she said. To inform this strategy, a consultation will be opened in the week of 16 March, lasting twelve weeks.

At the end of 2012, the Commission opened a dialogue with the Gulf States on this very issue but nothing concrete resulted. “We are going to ask the Council for a new mandate to negotiate directly with Gulf States”, the commissioner stated, adding: “That will be part of the overall aviation strategy”. (Jean Comte)

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