Moscow has threatened to ban Austrian Airlines flights into Russia after the carrier's take-over by Germany's Lufthansa, raising concerns about future airline consolidation in Europe.
In a move that revives questions about Russian economic nationalism, Moscow has been pressing Vienna to prove the airline is still Austrian.
The issue has arisen because of conditions in the so-called bilateral air services agreement between the two countries, one of about 3,500 agreements worldwide that determine which airlines can fly where and who must own them. When airlines merge, the flying rights in these agreements are not automatically transferred to the newly combined company.
"Bilaterals are always a trade-off between the states concerned," said Hugh O'Donovan, barrister and leading aviation lawyer at Quadrant Chambers in London, "and the nationality provisions may be raised by a state simply to seek advantage for its own carriers, or to seek something in return from the other state, such as reciprocity or other concessions.
"So long as nationality provisions are contained in bilaterals they place a major constraint on cross-border airline consolidation and investment generally."
Giovanni Bisignani, chief executive of the International Air Transport Association, said: "Brands not flags must define our business."
Lufthansa declined to comment. Under its takeover of Austrian Airlines, a 100 per cent Lufthansa-owned subsidiary based in Austria owns 49.8 per cent of a separate company that has 96.55 per cent of Austrian Airlines' shares. The remaining 50.2 per cent is owned by a private foundation, registered and domiciled in Austria.
Fonte: Financial Times
In a move that revives questions about Russian economic nationalism, Moscow has been pressing Vienna to prove the airline is still Austrian.
The issue has arisen because of conditions in the so-called bilateral air services agreement between the two countries, one of about 3,500 agreements worldwide that determine which airlines can fly where and who must own them. When airlines merge, the flying rights in these agreements are not automatically transferred to the newly combined company.
"Bilaterals are always a trade-off between the states concerned," said Hugh O'Donovan, barrister and leading aviation lawyer at Quadrant Chambers in London, "and the nationality provisions may be raised by a state simply to seek advantage for its own carriers, or to seek something in return from the other state, such as reciprocity or other concessions.
"So long as nationality provisions are contained in bilaterals they place a major constraint on cross-border airline consolidation and investment generally."
Giovanni Bisignani, chief executive of the International Air Transport Association, said: "Brands not flags must define our business."
Lufthansa declined to comment. Under its takeover of Austrian Airlines, a 100 per cent Lufthansa-owned subsidiary based in Austria owns 49.8 per cent of a separate company that has 96.55 per cent of Austrian Airlines' shares. The remaining 50.2 per cent is owned by a private foundation, registered and domiciled in Austria.
Fonte: Financial Times
