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Home » Flight tickets » Brussels will tackle unfair competition from airlines in the Gulf region
Airlines from outside the EU that receive financial or other support from their own government are subject to sanctions. This week, the European Commission is presenting a proposal against unfair competition in aviation. The sanctions consist of fines or withdrawal of landing rights, according to insiders.
Airlines in Europe, including KLM, have been urging measures against alleged state aid for, for example, Emirates, Etihad Airways and Qatar Airways for some time. Thanks to the petrodollars, they can therefore offer cheaper airline tickets and they have to pay less for kerosene. Due to this unfair competition, airlines in Europe could get into trouble and eventually go bankrupt, costing thousands of jobs.
EU transport commissioner Violeta Bulc has been in talks with companies from, among others, the Gulf region for some time, but nothing tangible has yet been achieved.
Source: Luchtvaartnieuws.nl
This could mean that plane tickets for flights to the Far East would become (quite a lot) more expensive. So this approach will mean that we will all have to pay even more taxes.
A better use of tax money (…) can also lead to tax reductions. I'm not going to go into detail here to keep my response short.
Brussels does not have to get involved in the domestic politics of the Gulf states and other countries. After all, those countries (probably) do not interfere with the politics of the European countries.
(I also live in the Brussels region.)
Let's think… If the (cheaper) airlines lose their licenses, fewer planes will land within the EU. The companies from within the EU will probably only be able to compensate for this to a limited extent, because part of the passengers will probably drop out due to the higher fares. Another part of the passengers will probably divert to other airports, such as London (which will end up outside the EU) and Zurich…
We will certainly keep an eye on this!
Trying to protect European airlines through political decision-making is also unfair competition of which the companies from the Middle East are accused.
For example, if Emirates were to file a complaint, it would state very strongly for these reasons…
In that case, that state aid must first be proven, and that has not yet happened. Only accusations and denials, no evidence.
I forgot to mention that many European airlines – including 'our' KLM – have benefited from state support…
Dear Cornelius,
it has been a while since KLM received state aid. Incidentally, our KLM has therefore been able to contribute a lot to job creation and prosperity. Any idea how many people have work due to the total aviation at Schiphol? At one point, the European Commission introduced a CO2 tax for airlines based in Europe. Companies from eg the Gulf States do not pay this tax and are not allowed to pass it on to their customers, and yet they can offer competitive rates. How could that be? You talk about evidence, but big companies are very good at obscuring such constructions. Be careful not to exclude healthy competition, supply is getting smaller and the big companies are going to determine the price of tickets. KLM needs supply from Europe for intercontinental flights. Price fighters such as Ryanair and Easyjet are skimming the market with cheap flights within Europe. It seems logical to me that a country wants to protect employment in its own country. always if a foreign airline decides to stop routes because it is no longer considered profitable, then other problems arise. Anyway, I could put forward a laundry list of points about unauthorized state aid, don't want to go into too much detail, but it is much more complex than one thinks.
AirFrance, of which KLM is now a part, receives fiscal support from the French government EVERY YEAR and also in 2017. So "a long time ago" is incorrect. Incidentally, it is hypocritical and naive to think that there is no state aid in France, Germany or the Netherlands. It is called differently, but every government grants state aid.
As for the kerosene; Emirates, Etihad and Qatar simply refuel at Schiphol and pay the price that the rest also pay. IF there is an advantage at all, then indeed in the homeland.
And if Schiphol, or people who have a warm heart for Schiphol, start talking about "the great employment opportunities" it offers, then I really need a share. Schiphol makes a profit on the backs of cleaners, security guards and passengers; Personnel of companies working at Schiphol are squeezed out because the lowest tender wins through tenders. That is at the expense of something and personnel is a major cost item where you can save a lot. The same goes for the security guards. As for the passengers; they pay the main price for food, drink and parking. Burger King pays $25000 monthly rent plus a hefty percentage of revenue (which is paid by passengers). So don't get me started about a pathetic Schiphol. Schiphol is a hard money machine for the Dutch government.
Corretje, this is very blunt "This should have been addressed long ago, and landing rights taken away". It is just as Daniël writes “Brussels does not have to interfere with the domestic politics of the Gulf states and other countries. After all, those countries (probably) do not interfere with the politics of the European countries”. Brussels increasingly wants to determine what other countries outside Europe are and are not allowed to do. It is already very tired that they are already doing that in the EU, with all the consequences that entails.
I fully realize that this is very complicated, but that should not lead to presumptions and assumptions becoming the basis for 'penal' measures, instead of objective determinations.
In this way, the EU will once again ensure that something becomes more expensive for the people. This time the plane tickets.
Especially in Europe, airlines pay horribly high taxes. That is not the case in the Middle East, and they call that “financial or other support” from those governments.
Those governments are simply less greedy than the EU and the robbers within the EU.
Yet there are still people who do not see how wrong the EU is for them.
The EU is not there for the people, but mainly for itself, the banks and the multinationals.
I wish everyone who is still alive there a lot of strength in the coming years.
I don't see that much difference, when I look or book KLM is always cheaper than those Middle East airlines. When I see that a BC ticket of 1900 euros contains 800 euros in tax and landing fees, then they should do something about it first.
It is just too short-sighted that it is unfair competition, just because they fill up with fuel smarter, read cheaper… we do that ourselves with the car. And KLM also does that, which also fills up the jumbos where they can get a double cheaper per litre.
If you really want to fly cheaper, then you should look at British airways and Swiss airways, which are always several hundred euros cheaper, but then you always have to transfer again.
In fact, if I book a ticket from Dusseldorf with KLM to BKK then I am also a good buyer, but then I first have to go to Dusseldorf from there by plane to AMS and I will go to BKK with the same KL875, do you still understand ?
About ticket Dusseldorf via Amsterdam to Bangkok, the following info may make it seem logical. From Germany, direct flights are offered by, for example, Lufthanse to Bangkok. In order to attract customers who also have to transfer, KLM offers cheaper tickets from abroad than in the Netherlands. Other airlines are doing exactly the same, namely trying to get customers away from your competitor by offering cheaper tickets but with transfers, so longer journeys.
This also applies to Etihad, where tickets can also be booked cheaper from DUS or BRU than from AMS, but indeed what a hassle to first go to DUS or BRU and also transfer in AUH. No, but rather directly with KLM.
I think you should take another good look at that list of allowances.
Fuel surcharge is not a tax, but simply part of the ticket price, which has a different name.
And with a little good will, the fuel SURCHARGE is higher than the amount that the company pays for the fuel.
It is good that this policy is being pursued at EU level. It is absolutely necessary to slow down (stop?) the Middle Eastern companies from strengthening their market position. After all, they do this precisely with petroleum dollars that we provide them. Competition has positive effects for both producer and consumer. However, if this results in the formation of a de facto monopoly, those benefits are more than offset by the negative effects for the consumer.
Free trade is the right way, but absolutely on a level playing field.
Not in a dupe game that leads to private monopolies.
There is one thing worse than a government monopoly, namely a (de facto) private monopoly, because that is much more expensive for the consumer.
I never quite understand the fuss; The “Arab 3” are only a tiny fraction in both the number of flights and passengers.
Emirates, Etihad and Qatar pick up a maximum of 1500 passengers daily from Schiphol (2x A380, 1x B787 and 1x B777). Schiphol transports an average of 160.000 passengers a day. That is less than 1% of the number of passengers. That's peanuts!
Corretje, I still don't think you understand. You keep harping on about how good the EU is, but all the “bigwigs” who sit there first think about themselves three times and if they still have time left, they might also start thinking about someone else. I'm glad the “Arab 3” as you call them are here. They still offer real service, which is hard to find with many European companies.
How Cor, how can airlines that TOGETHER transport less than 1% of the number of passengers spoil the market? That is not possible. Not now, not ever.
This is just protectionism. As is known, a considerable lobby from Lufthansa, AirFrance/KLM and BA/Iberia preceded it. And the EU likes to listen to large companies, just as in the particulate filter scandal (VW/Audi) no sanctions have yet been imposed on companies.
Once more; the Arab 3 are not ruining the market. The market is being ruined by LCCs (low cost carriers such as Ryanair, Easyjet, Wizz Air etc) that have low costs at the expense of others (e.g. staff) and can therefore compete with established airlines, which in turn have been around for the last 20 years. to sleep. And of course the role of (in NL) Schiphol. He has let things get messed up for the last 10 years, making it a mess now.
Moderator: Please don't get personal.
Good afternoon,
We like to fly to Thailand with Qatar Airways, and to other countries with Etihad and
Emirates. The service level is a lot higher than that of our own airline.
If there are any problems, they are resolved quickly and efficiently.
Thanks EU………with the jealousy rules.
Inge
What is Brussels involved in? Those Arab planes really don't fly on air or make up for the flights.
State aid to Allitalia, to Delta Airlines (USA) previously to Sabena (Belgium) what about the French support for Air France?
And I am not talking about the State aid to KLM all these years and the sale to Air France for an apple and an egg ( € 900 million !! )
If there are lawsuits about this, they will take years.
In itself a good starting point that Brussels goes after, for example, cartels, monopolies, price agreements and other forms of unfair competition. Brussels has already fined several large parties in various sectors for this reason. This will prevent major players from destroying all competition now or in the future and thus be able to cheat the consumer now or in the long term.
However, it is not surprising that countries give subsidies to certain sectors. That can cause international friction and then choice 1 is to see if you can make international agreements about this. But if that doesn't help and you don't want to let your own companies go under, it makes sense to look for other solutions.
In related news:
Asian airlines make a profit of USD 5 per passenger, the world average USD 7,69 and those from the Middle East USD 1,78 per passenger.
Source: https://coconuts.co/bangkok/news/nosedive-asian-airlines-make-less-5-profit-per-ticket/
Airlines from within the EU that receive financial or other support from their own government are therefore not subject to sanctions.