IATA AGM: War of words with Canada continues

The CEO forum at the IATA annual general meeting in Singapore was once again dominated by blistering attacks on the Gulf carriers.

Airlines from Europe and North America used the open forum to criticise the Middle East airlines for protectionism – an argument that had been discredited by a report from Oxford Research last week.

Air Canada chief, Robert Milton, described the three main Gulf carriers of Emirates, Etihad and Qatar Airways as being "the most protected carriers in the world that cannot be allowed unfettered access to markets.”

In a blistering attack he said: "They are arguing for free access, but aren't we talking about the most protected, most government supported carriers around? There are none more state-owned than these three," he said.

Milton called on the major Alliances to stand up to the challenge by the Gulf carriers and offer an alternative.

Emirates president Tim Clark responded by repeating that Dubai is an open economy with open skies. He described the arguments about government aid as being “like a cracked record”. He pointed a finger at Milton, “. "Show me evidence of a non level playing field. Our books are open"

Qatar Airways boss Akbar Al Baker repeated his point from last year’s forum in Berlin saying the arguments against Gulf carriers make little sense in an "age of globalisation and free trade".

He also opposed arguments that the Gulf airlines benefit from low labour costs by pointing out that Qatar pilots earn more than more American or European pilots do with the same experience.

He echoed the words of the Oxford Report saying: "We are an efficient airline, run in a proper way with high utilisation,"

But that held no sway with some European airlines. One Austrian Airlines' executive board member said that the Gulf carriers had an unfair advantage due to government support and a close relationship with their airports and aviation authorities. He questioned if Dubai, for example, would allow a foreign airline to start up a subsidiary without disadvantages.

Al Baker responded on behalf of the Gulf airlines. "If they allow us to establish to a subsidiary in Vienna, they can set up a subsidiary in Doha. We are happy provided there is reciprocity," he said

The Oxford Research report, published last week, showed there was no commercial advantage for Emirates airline and that its success was due to being well managed.