Dubai has 'unfair' trade laws that prevent Lufthansa from competing with Emirates in UAE
Lufthansa VP Sales and Services Middle East Joachim Steinbach stated Dubai has "unfair" trade laws that prevent Lufthansa from competing fairly with Emirates in its home market (Arabian Business, 20-Jan-2011). Mr Steinbach added that the existing bilateralagreement between the UAE and Germany was already “the most liberal one that exists between the UAE and Europe” adding that Lufthansa does “not enjoy equal treatment in Dubai due to the sponsorship requirement".
Lufthansa: “[Emirates] can walk freely and move freely in Germany. We Lufthansa, according to the local laws of the Arabian sponsors, are very much limited the way we do business in Dubai because we have to adhere to local sponsorship agreements. We cannot do business as a legally independent company. We are really restricted. We have to overcome these ancient trade obstacles of the way we do business here, which is a lot of cost,” Joachim Steinbach, VP Sales and Services Middle East. Source: Arabian Business, 20-Jan-2011.