The EU pushes back against Gulf carrier subsidies

EU governments gave EU transport chief Violeta Bulc the go-ahead to negotiate aviation agreements with the United Arab Emirates and Qatar, setting up a potential clash over alleged unfair subsidies to airlines based in the two Persian Gulf nations. European transport ministers meeting on Tuesday in Luxembourg included a provision on financial transparency in the negotiating mandates for Bulc, targeting any market-distorting aid to Emirates, Etihad and Qatar Airways. The ministers also approved similar mandates for accords with Turkey and the Association of Southeast Asian Nations. “These agreements will offer new business opportunities to the whole aviation sector, new routes and better fares to passengers, while guaranteeing a level playing field to our companies,” Bulc said. The air-transport deals being sought with the UAE and Qatar are a priority because those nations have fast-growing aviation markets and the issue of subsidies in the Persian Gulf states has become politically sensitive in Europe. Bulc, who’s in charge of transport at the EC, aims to reach agreements by the end of 2019.<br/>