British Airways chief executive Willie Walsh has warned European airlines not to underestimate the threat posed by growing carriers in the Middle East.
In a wide-ranging address to an industry audience in Brussels, Mr Walsh argued Middle Eastern carriers – including Dubai’s Emirates, Etihad of Abu Dhabi and Qatar Airways – are capable of transforming long-haul services in a similar to fashion to the revolution seen in low-cost short-haul travel.
“We have been very slow in the UK and in Europe to recognise the new competitive threat,” added Mr Walsh.
The BA chief was particularly concerned by the so-called home country rule: an agreement between the US and Europe that prohibits government credit guarantees to airlines in the home countries of Airbus and Boeing.
The deal excludes BA, Lufthansa and Air France-KLM from government credit assistance to buy aircraft while allowing export credits to the Middle East.
Posts: 7,536
By: KabirT - 18th September 2010 at 06:31
British Airways chief executive Willie Walsh has warned European airlines not to underestimate the threat posed by growing carriers in the Middle East.
In a wide-ranging address to an industry audience in Brussels, Mr Walsh argued Middle Eastern carriers – including Dubai’s Emirates, Etihad of Abu Dhabi and Qatar Airways – are capable of transforming long-haul services in a similar to fashion to the revolution seen in low-cost short-haul travel.
“We have been very slow in the UK and in Europe to recognise the new competitive threat,” added Mr Walsh.
The BA chief was particularly concerned by the so-called home country rule: an agreement between the US and Europe that prohibits government credit guarantees to airlines in the home countries of Airbus and Boeing.
The deal excludes BA, Lufthansa and Air France-KLM from government credit assistance to buy aircraft while allowing export credits to the Middle East.
http://www.breakingtravelnews.com/news/article/ba-chief-warns-over-middle-east-threat/