PARIS—French airlines are criticizing an aviation agreement between the European Union and Qatar, saying it will intensify competitive pressure for airlines still struggling with the impact of the COVID-19 crisis.
The airlines are calling on the European Commission (EC) to ensure that competition is fair under the new deal.
The EU and Qatar on Oct. 18 signed a comprehensive air transport agreement, upgrading rules and standards for flights, committing both sides to fair competition and including social and environmental protection. It is a move the two parties said will open up new opportunities for consumers, airlines and airports through more connectivity at more competitive prices.
However, airlines in France are not convinced.
“Air France-KLM regrets the signature of this agreement, which is likely to significantly intensify the competitive situation on departure from France and the Netherlands, at a time when the COVID crisis is still strongly impacting its activity,” a spokesman for the Franco-Dutch airline group said.
French airlines’ association FNAM was critical about the timing of the deal, which has been in negotiation since 2019. “Signing it when we are, on the one hand, in the middle of the COVID crisis with airlines extremely weakened in Europe and secondly, without integrating into the agreement Europe’s new environmental policy, seems to us a real shame,” Laurent Timsit, MD of the association, told Aviation Daily.
“We don’t think the timing of the deal is good and we are worried about the consequences. We think a certain number of clauses should have been reinforced because of the change in circumstances,” Timsit added, noting in particular that European airlines would be subject to a whole host of new environmental commitments.
Under the agreement, which the two sides said would create a level playing field through strong safeguards and provisions on open and fair competition, all EU airlines will be able to operate direct flights from any airport in the EU to Qatar and vice versa for Qatari airlines.
However, the potential for Qatar Airways to increase flights to Europe is much greater than the potential for European airlines to operate to Qatar.
OAG data shows that while Qatar Airways operated 726,917 seats to Qatar from European countries (as defined by IATA’s regions) in November 2019, British Airways operated just 5,616, Turkish Airlines 5,348 and Pegasus Airlines 7,752. No French airlines operated scheduled services between the two markets.
Following the signing of the agreement, both sides will immediately be able to exercise so-called third and fourth freedom traffic rights between any airport in the EU and Qatar and vice versa.
“In terms of market opportunities, it is much more favorable to Qatar than to the European Union,” Timsit said. “But the much bigger issue is whether competition will be on a fair basis.”
Air France-KLM is asking the EC to guarantee fair competition between the different players, including through the application of provisions in the agreement which provide for the respect of competition rules, transparency and social laws.
“These provisions will oblige airlines to be totally transparent about their accounts,” the airline group said. “Air France-KLM will be very attentive to the complete respect of the framework of this agreement, including through the mixed committee that will be put in place by the European Commission. Air France-KLM considers the establishment of this committee a priority.”
While direct flights between most EU Member States and Qatar have already been liberalized by existing bilateral agreements, none of them included provisions on fair competition, financial transparency or social and environmental issues, the EC said when it set out the deal. “The parties have affirmed the need for urgent action to address climate change and the importance of high labor standards, and agreed to cooperate in these areas,” the EC said.
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