EU's proposal to safeguard competition may flush out protectionist complaints against Gulf airlines

European aviation regulators have drawn the battle line between those seeking a protectionist response to Gulf competition and those that do not want to see such regulatory backsliding. On 8-Jun-2017 the European Commission published a proposal aimed at safeguarding competition in air transport. This was the highlight among a number of measures adopted by the Commission to progress the Aviation Strategy that it issued in Dec-2015.

The Commission proposes a new Regulation to make it easier for European airlines to lodge a formal complaint against practices by non-EU countries, or airlines, that might distort competition. These include subsidies, unfair pricing and other forms of discrimination. If these are found to cause injury - or to threaten to cause injury - to EU airlines, it will allow the Commission to impose penalties on the non-EU airline.

The EU believes that this will help to ensure fair competition, or a "level playing field" between its airlines and those of third countries ('third countries' is EU speak for non-EU countries). According to the EU, this will contribute to "conditions conducive to a high level of connectivity". The EU also sees the proposed Regulation contributing to strengthening its role as a "global actor".