EU Calls for Air Services Deal With Middle East

LONDON—The European Union is seeking comprehensive air services agreements with the Middle East countries that host some of the world's fastest-growing airlines whose expansions are opposed by some U.S. and European carriers, it said Monday.

Air France​-KLM SA​ and ​Deutsche ​Lufthansa ​AG ​argue that the Middle East carriers have benefited from state aid that has distorted competition. They have asked the EU to reset the competitive landscape with the group, which includes Etihad Airways. The argument over traffic rights has spread across the Atlantic, where U.S. carriers Delta Air Lines, United Airlines and American Airlines are also trying to arrest inroads from the Persian Gulf carriers.

The European Commission, ​the EU's executive arm, ​said the airlines and airports in Persian Gulf states "are reshaping the global competitive pattern of aviation."​Far-reaching agreements with the Gulf Cooperation Council states would create "conditions that will allow further market development and growth based on common rules and transparency," the Commission said. ​ ​

On Monday, the Commission presented a long-awaited aviation policy in which it said it would seek aviation accords with Turkey, China and other markets.

"European aviation is facing a number of challenges and today's strategy sets out a comprehensive and ambitious action plan to keep the sector ahead of the curve," EU Commissioner for Transport Violeta Bulc said.

The Commission also pledged to improve the safety and efficiency of its air transport sector, which it said employs two million people in the EU.

The European Union will hold an aviation summit next month where the Commission is expecting feedback from stakeholders on its proposal as well as to help formulate more detailed implementation plans.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

December 07, 2015 06:45 ET (11:45 GMT)

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