During a recession (or even when coming out of a recession) many countries conservatively seek to ensure their local businesses receive support to some degree. This is a normal course of action and can take on many forms from a one time tax break, subsidy etc... However, recently flagship carriers from the United Arab Emirates: Etihad (Abu Dhabi) and Emirates (Dubai) have encountered resistance from Canadian and German authorities regarding expanded travel routes. Etihad is only involved in the Canadian fray, but the two incidents occurring consecutively is telling of the environment within the industry.
President of Emirates Airline, Tim Clark says “It has taken European carriers donkeys’ years to adapt their business models to the changing dynamics of global civil aviation... They haven’t been able to align their traffic flows to what is going on, whereas we have.”
Will there be more clashes over routes in the near future as Qatar Airways and other buyers of the A380 seek to deploy their new carriers into the marketplace? How does this bode for the massive airport expansions underway in Doha, Dubai and Oman? Is it a possibility in the not too distant future that the same countries that sold these Gulf carriers their large aircraft orders will refuse them the landing rights to use them?
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