EU to start delicate Middle East, Asia aviation talks

The EU is poised to kick off talks on far-reaching aviation agreements that will land its negotiators in between some fast-growing emerging-market airlines and those European and US carriers opposing their expansion. EU member states Tuesday are set to grant the EC, the bloc’s executive arm, the exclusive mandate to negotiate deals with the United Arab Emirates, Qatar, Turkey and members of ASEAN. The accords would replace a patchwork of bilateral pacts governing commercial flights. Airlines such as Air France-KLM SA and Deutsche Lufthansa AG argue that the Middle East carriers have benefited from state aid that has distorted competition. They have asked the EU to reset the competitive balance with foreign state-owned airlines—including Emirates Airline, Qatar Airways and Etihad Airways—which they say have received E39b in handouts between 2004 and 2014. The Middle East airlines deny the charge. “Some sort of equal playing field needs to be established so that we have open and fair competition,” EU Transport Commissioner Violeta Bulc said. The argument over fair competition echoes one playing out across the Atlantic, where US carriers are also trying to find regulatory leverage to peg back the growth of the Middle Eastern airlines. Bulc said the EU-level aviation agreements would give partner countries a “predictable, equal legal framework.” It also should spur growth. “Whenever we introduce a one-stop-shopping approach, it benefits both sides,” she said.<br/>