EU close to agreeing air traffic deals with Qatar, ASEAN


Negotiations on the two deals are "on the home stretch" and could come into effect in 2019, the people said.

BRUSSELS: The European Union is close to striking air traffic agreements with Qatar and a group of countries in southeast Asia, two people familiar with the matter told Reuters.

Negotiations on the two deals are "on the home stretch" and could come into effect in 2019, the people said.

As part of the deals, Qatar and the Association of Southeast Asian Nations (ASEAN) would agree to ensure their airlines conform to environmental, worker safety and competition standards, and would in exchange be guaranteed that they would be given the same rights as their competitors.

ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Thailand, the Philippines, Singapore and Vietnam.

EU member states gave the green light in 2016 for the European Commission to pursue air traffic agreements with the United Arab Emirates, Qatar, Turkey and the ASEAN countries to try to support its airlines.

Flying rights are typically granted on a bilateral basis between governments.

Some EU airlines, notably Air France-KLM and Lufthansa, have long complained about what they see as unfair competition from foreign carriers such as those in the Gulf region - Emirates, Etihad and Qatar Airways - which they accuse of receiving illegal state subsidies.

The three airlines strongly deny such claims.

The agreements being discussed would rule out unfair subsidies for airlines, the sources said.

They said some points of the air traffic agreements still remained to be worked out and added that the content of the contracts could still change. - Reuters

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Hextar Capital to diversify into construction and project management services
Genting Plantations expects demand for palm products to advance in 2024
FBM KLCI up despite market weakness, Middle East tension
Surging dollar pressures Asian FX; S.Korean won leads losses
China set to keep lending benchmark LPRs unchanged in April
Gold rises as safe-haven appeal boosted by Israel's attack on Iran
MKH Oil Palm IPO oversubscribed by 8.4 times
Bank Negara adds four companies to Financial Consumer Alert list
Nissan cuts annual operating profit estimate by 14.5% on lower sales
Oil surges as reports of Israeli strike on Iran roil markets

Others Also Read