LONDON-- British Airways parent International Consolidated
Airlines Group SA has pulled out of a major European airline trade
body as the battle over how to deal with Middle East growth
carriers escalates.
IAG ceased its membership in the Brussels-based Association of
European Airlines because "on some important policy issues is not
aligned with the other AEA legacy airlines," the London-based
airline group that also owns Spanish carrier Iberia said in a
statement.
"In particular, we believe global liberalization of our industry
is fundamental to our future growth and we are not willing to
compromise on this fundamental matter," IAG said in an emailed
statement.
Several European airlines have clashed with rapidly expanding
Middle East carriers, such as Emirates Airline, Etihad Airways, and
Qatar Airways, over their pace and method of growth. Air France-KLM
SA and Deutsche Lufthansa AG, who have lost Asian traffic to the
Persian Gulf state airlines, have lobbied national governments and
the European Union to curtail the growth of the rivals they accuse
of benefiting from unfair state subsidies.
The battle has now expanded to the U.S. where carriers such as
Delta Air Lines Inc. are leaning on the government to limit the
Mideast airlines' growth. The Middle East carriers deny they are
subsidized.
The AEA said on its website that it "calls upon European
governments to effectively dissuade non-EU governments from
pursuing discriminatory policies which distort competition among
international airlines."
The association couldn't immediately be reached for comment
about IAG's exit from the group that was first reported by trade
publication Aviation Week.
IAG Chief Executive 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.
Etihad Airways Chief Executive James Hogan on Wednesday met the
EU's transport commissioner, Violeta Bulc. The European Commission,
the bloc's executive arm, this year plans to spell out a new
aviation policy, covering issues such as competition.
"Growing resistance to us from a handful of protectionist
competitors could have unintended consequences well beyond limiting
our development, " Mr. Hogan said in a statement after the meeting.
"If our growth is curtailed or our investments in airlines are
compromised, the real damage will be to Europe in lost jobs, lost
flight connectivity, lost investment in local and national
economies and lost consumer choice."
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