Europe

EU to investigate claims of Gulf carriers subsidies

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EU to investigate claims of Gulf carriers subsidies

The European Commission has declared it will address the concerns raised by the French and German transport ministers over unfair subsidies to Gulf carriers when the EU proposes a commercial aviation agreement with the Gulf region later this year.

European Union transport ministers met last Friday, where France and Germany asked the Commission to look at an aviation agreement with Gulf carriers as a way to stop European airlines losing market share to their Middle East competitors.

Any commercial flying agreement including the granting of air traffic rights to foreign carriers should be accompanied by provisions allowing member states to monitor potential illegal subsidies and unfair competitive practices, French transport minister Alain Vidalies said in a statement.

“Aviation is very much challenged by competition right now and we need to address it in a more comprehensive way,” said Violeta Bulc, EU Transport Commissioner.
The move comes as the same matter is being heard on Capitol Hill at the moment.