Austrian Airlines requested government compensation to allow it to compete with Emirates, who have been recently granted permission to almost double its services to Vienna (Arabian Business, 28-Mar-2011). Emirates signed a deal with Austria’s transport agency to increase its service to 13 times weekly from 27-Mar-2011 in response to high customer demand. An Austrian Airlines spokesperson stated that fees such as domestic fare taxes and costs related to carbon dioxide emissions – which don’t affect Emirates – mean it is unable to compete on an equal footing
Austrian Airlines: "This is not a good decision, either for the Vienna hub or for the city as a business location. It is becoming increasingly difficult to offer non-stop long-haul flights from Vienna, as carriers in the Gulf operate subject to completely different preconditions than European airlines due to the intertwining of state, owners, airport and airline in the region. Quite simply, competition is not taking place on a level playing field. [Austrian Airlines would need to be] rapidly compensated in turn through the suspension of another measure which places an unnecessary strain on the location: the flight ticket tax.” Spokesperson. Source: Arabian Business, 28-Mar-2011.