BRUSSELS—The chief executives of Europe's five largest airlines
on Wednesday set aside their differences and urged the European
Union to promote the industry's competitiveness by lowering costs
for passengers and carriers as part of the bloc's new aviation
strategy being hammered out this year.
The CEOs of Air France-KLM SA, EasyJet PLC, Deutsche Lufthansa
AG, Ryanair Holdings PLC and British Airways' parent, International
Airlines Group SA, said they would establish a new association this
fall to push the European Commission—the bloc's executive body—to
remove passenger taxes, lower airport costs and adopt measures to
stem damage from air-traffic control strikes.
The new strategy means that "the airlines need a unified voice
because it has been somewhat disparate in recent years," said
Ryanair CEO Michael O'Leary.
The EU last week completed public consultations over the new
strategy, which covers issues ranging from airport security,
air-traffic control to market liberalization.
A spokesman for the commission said it had received about 280
contributions and would publish a report as soon as they were
assessed.
The CEOs called for reduced passenger taxes and lower costs at
EU airports. High airport costs were destroying the airlines'
competitiveness, they said.
In addition, the airlines said the EU should put in place
measures that would mitigate the damaging effects of industrial
action by air-traffic controllers, which has led to more than 3,000
flight cancellations this year.
They suggest allowing airlines to overfly airports hit by
strikes or encourage arbitration with air-traffic controller
representatives.
"We're not trying to outlaw strikes...but put in place some
first-step measures so that strikes are not the first club in the
golf bag they reach for," said Mr. O'Leary.
The executives said their joint future meetings would focus on
promoting their shared views, rather than areas where they
disagree, such as over the role of Middle East carriers in
Europe.
"We do not agree on [the issue of] Gulf carriers, we will not
deal with that here, it is something we will deal with
individually," said Air France CEO Alexandre de Juniac.
Air France and Lufthansa argue that Middle East carriers have
benefited from state aid that has distorted competition.
Franco-Dutch and German carriers are pressing the commission to
restrict the growth of those Gulf airlines in Europe.
By contrast, IAG CEO Willie Walsh has long championed greater
liberalization in aviation markets even before Qatar Airways this
year took a 10% stake in the European airline group, making it its
largest shareholder.
"We are competitors so you shouldn't expect us to agree on every
issue," Mr. Walsh said.
The five airlines, which in total fly around 420 million
passengers each year, said the association would also be open to
all other European carriers.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
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