Release #: Vol. 84, No. 3
April 01, 2015
Fair Competition, Fair Skies Around the World
Please allow me to be blunt in my best English. European flag carriers are at risk. This is why the European Cockpit Association (ECA), in close cooperation with ALPA, International, is calling for fair competition, fair skies, and a level playing field for all competitors in today’s global aviation marketplace.
After last year’s International Federation of Air Line Pilots’ Associations annual conference, a Fair Competition Task Force was set up within the ECA. Like ALPA, the ECA has published a white paper titled “The Case for Fair Skies in Europe’s Aviation.” Please scan the QR code and take a few moments to read the paper. Lobbying campaigns have been launched, and we’ve been meeting with European Union (EU) and state representatives. Unfortunately, thus far we’ve had limited success.
ECA members believe the tide may be turning, however, with the very powerful campaign recently launched in the U.S., now commonly referred to as the Partnership for Open & Fair Skies. The partnership and the evidence of massive subsidies to Emirates, Etihad, and Qatar are creating quite a buzz in Europe.
Journalists, government officials, our own airline executives, and even the traveling public are beginning to discover the potentially dramatic consequences of the incredible growth of these three Middle Eastern airlines—very much to the detriment of Europe’s airlines.
Politicians who never before paid much attention to the revenue that our airlines generate are finally waking up. They’re beginning to understand that this is a huge threat, that thousands of jobs are at stake, and that our home economies are threatened by these carriers’ predatory practices.
Here’s how I see the EU playing field as I write this article.
Our governments currently lack any sense of real urgency on the subject, and our airlines’ CEOs seem quite reluctant to make public statements against the Middle Eastern carriers and their unprecedented subsidies. They seem conflicted. On the one hand, they see these airlines as dangerous predators (revenue on EU–Asia routes has dropped by 37 percent within the last few years). On the other hand, they see the possibility of joining these carriers as potential wealthy partners.
European pilots face another challenge. Unlike the U.S., the EU isn’t a nation—it’s only a market. Many still believe that the unique monetary system our politicians created benefits the EU. Unfortunately, they’ve forgotten to provide similar and compatible government regulations that would ensure a fair and level playing field for all businesses. Thus, unfair competition in our industry in Europe is not just limited to Middle Eastern airlines. Norwegian Air International, Norwegian Air Norway, Ryanair, Primera Air—these and dozens of unprincipled operators are using loopholes or nonexistent EU legislation to set up new business models, often at the very edge of legality. Bogus self-employment, zero-hour contracts, and pay-to-fly schemes are challenging issues that pilots in our countries face every day.
Even worse and despite restrictions, some discount airlines are now seeking direct or indirect subsidies from airports and local authorities, which is distorting competition for flag carriers operating from our major network hub cities. And like in the U.S., EU flag carriers are competing with airlines that are benefiting from low-interest financing from export credit agencies.
In the EU, air transport supports almost 8 million jobs and generates more than 475 billion euros in revenue, and also contributes to tax income and social security systems. The industry and the jobs it provides continue to be an enormous stimulator for economic growth, tourism, and connecting lands and people.
Our policymakers must recognize the critical importance that the airline sector plays in Europe’s overall economy. EU member states play a key role in ensuring that the playing field is level and that strategic elements of their economy (airport infrastructure, airline ownership, market access) are not traded away when negotiating air transport agreements and cross-sector trading partnerships with foreign companies and governments.
ECA pilots face many of the same challenges that our good friends and longtime colleagues across the Atlantic do. Like you, we do not fear competition. We support fair competition on a level playing field. Together, the ECA joins with you to ensure that our politicians and regulators level the playing field and that those who’ve signed air service agreements with our countries abide by those agreements. We believe this fight is the defining issue for the next generation of professional pilots in Europe and in North America. We also believe that by working together with ALPA we can win this crucial battle to save our industry and our profession!
This article is from the April 2015 issue of Air Line Pilot magazine, the Official Journal of the Air Line Pilots Association, International—a monthly publication for all ALPA members.-###-