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Home » News » EU Makes It Easier for Carriers to Legally Challenge Gulf Rivals
News

EU Makes It Easier for Carriers to Legally Challenge Gulf Rivals

Matthew Klint Posted onJune 9, 2017November 14, 2023 1 Comment

Protectionism is the darling of populist movements and populism is alive and well around the world today. Now the EU plans to make it easier for European carriers to lodge anti-competitive complaints against foreign rivals. If the discourse in Europe even remotely resembles the misinformation campaign in the USA, the Gulf Carriers better get busy planning a counterattack now.

Lufthansa contends that Gulf Carriers have “severely damaged European network carriers”. Pardon my skepticism, but Lufthansa recently announced a much cozier relationship with Etihad Airways. Is this not a clear example of speaking out of both sides of your mouth?

two men sitting at a table

> Read More: Etihad and Lufthansa Announce Closer Partnership

A 2004 law addressing airline competition is already on the books, but European airlines contend the burden of proof to even submit a claim is too high.

The EU’s proposals, which have to be cleared by the European Parliament and Council, lower the bar for airlines or member states to launch a complaint against foreign rivals.

If the European Parliament and Council adapts the proposed legislation, which seems almost guaranteed, complaints will be permitted based upon “foreseeable” (rather than “demonstrated”) harm.

Restricted landing slots are at the heart of the matter: European carriers contend that they are often granted uncompetitive slots vis-a-vis their foreign competitors. Subsides are central to the debate as well. We are hearing the same arguments from European carriers that we hear from Delta.

> Read More: Exposed: Shameful Double Standards on Airline Subsidies

The European Commission will be able to launch complaints on its own or act as the investigatory body on behalf of airlines or national governments. If violations are found, the commission may restrict European airport access or issue fines to the offending carrier.

CONCLUSION

While such legislation may appear harmless and fair, I have my doubts. European carriers will now be able to drag rivals into court based upon potential harm, not actual harm. Spurious lawsuits meant to handicap especially fierce competitors will only hurt consumers. Ultimately, consumers may find reduced service at higher prices, all in the name of  “fairness”.

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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1 Comment

  1. James Reply
    June 9, 2017 at 12:37 pm

    I understand if US carriers are afraid of ME3, since their service is like heaven and earth in comparison. But EU also afraid? Lufthansa, KLM, Air France, SAS afraid of ME3? What a coward….

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