The boss of Etihad Airways has accused a group of major US and European airlines of trying to “block” competition within the aviation market.
Etihad’s chief executive James Hogan said that the “dark clouds of protectionism are gathering over Europe and the United States”, during a speech to the Aviation Club in London.“Five mega-carriers are trying to pull the ladder up after years of having it their own way,” said Hogan. “The people that will really lose if these giant legacy airlines are successful are the millions of travellers benefitting from new choice in the global air travel market.”
Etihad and the other major Gulf carriers, Emirates and Qatar Airways, have been under attack from the likes of Delta, American Airlines, United, Lufthansa and Air France KLM, which allege that the Middle Eastern airlines benefit from government subsidies and use “anti-competitive” practices.
Hogan dismissed these claims in his speech and he added that the growth of the Gulf carriers had helped to increase the number of air passengers around the world.
“Some of the carriers attacking us claim they are losing market share,” added Hogan.
“They are getting a smaller slice, it is true. But it is a slice of a bigger cake and the bigger cake is proof that more people are able to travel – more consumers are getting the benefits of competitive choice.”
Hogan also said it was “telling” that British Airways’ owner IAG had not joined in the attacks on the Gulf carriers.
“BA is a business whose steel has been forged in decades of fierce competition – domestically, across Europe and globally. [IAG chief executive] Willie Walsh doesn’t complain when he sees new competition come into the market. He just gets on and competes.”
Hogan said it was wrong to “lump” all of the Gulf carriers together as they all had different business plans and strategies.
“Unlike the three American carriers, who have been working together so closely on this issue - latterly in co-operation with Lufthansa and Air France KLM - we just work on our own,” he added. travelweekly