8-Jul-2011 12:37 PM

Air France-KLM CEO expresses concern regarding potential shift from Europe to Gulf States

Air France-KLM CEO Pierre-Henri Gourgeon, in the carrier's 2010/2011 Annual Report, stated that is is "by developing our network and offering non-stop flights that we
can compete with the Gulf State airlines".

Air France-KLM: "The European continent is currently the best connected to the rest of the world. This is a key competitive advantage for the European economy at a time when trade is globalizing. It is true, however, that the Gulf carriers are investing heavily in their flight equipment by taking advantage of their location in countries where there are no taxes, levies or social charges. It would probably be very negative for Europe, its economy and citizens if the centre of gravity of global air transport were to gradually shift from Europe to the Gulf States. I have alerted the public authorities to this situation not for protectionist reasons but so that competition can be fully played out on equitable foundations. We are also working flat out to leverage and consolidate our strengths to withstand this competition," Pierre-Henri Gourgeon, CEO. Source: 2010/2011 Annual Report.

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