EARLIER this month the
European Union said it would
focus on tackling alleged
unfair competitive practices by
foreign airlines.
The proposal, which still
needs to be approved by the
European Parliament, will
streamline the process for
EU airlines and governments
to submit complaints about
alleged discriminatory
practices they face in non-EU
countries or illegal subsidies
benefiting non-EU airlines.
Non-EU carriers risk being
fined if the EC finds their
practices cause ‘injury or
threat of injury’ to European
airlines. Foreign carriers would
not be able to be grounded
because of these complaints
and the new rules would not
interfere with bilateral air
services agreements. The
proposal aims to replace
Regulation 868/2004 which
provides protection against
subsidisation and unfair
pricing practices in the supply
of air services from non-EU
countries.
European carriers, including,
among others, Air France,
KLM, Lufthansa and TAP, have
welcomed the new proposal.
The airlines issued a common
statement saying:
EU to tackle unfair airline competition
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