Air France-KLM Exec Warns Emirates Airline On Access

Emirates Airline may face a backlash from more governments unwilling to accommodate the next phase of the Dubai-based carrier's rapid expansion plan, according to a senior executive at Air France-KLM.
The airline is already embroiled in battling high-profile efforts by Germany and Canada to regulate its fares and capacity.
Emirates can expect "more and more reluctance [by governments] to grant traffic rights," said Peter Hartman, chief executive of the KLM unit of Air-France-KLM, and a member of the airline's governing board.
Long-running spats with Australia and India over increasing capacity come amid allegations--all denied--that Emirates receives subsidies and other support from the Dubai authorities that have used the airline to spearhead the diversification of its economy.
Hartman's comments highlight the unease felt by executives at major airlines over Emirates' continued growth and profitability. It stunned rivals last month by announcing plans to boost its fleet of Airbus A380s to 90 from 58.
Its phenomenal expansion has created a fourth pillar driving the industry's future, alongside the three alliances--SkyTeam, Star and Oneworld--that account for more than half of global passenger traffic.
23/06/10 Doug Cameron/Dow Jones/Wall Street Journal

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Categories: Foreign Jun 2010