berari
Topic Author
Posts: 234
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Country policies/laws that benefit their local airline(s)

Thu Nov 02, 2017 10:25 pm

Certain countries have policies and laws in place that either intentionally or inadvertently support their own airlines.

One well known act is the US "Fly America Act" that requires the use of US air carrier service for all air travel and cargo transportation services funded by the U.S. government (certain exceptions apply.)

Another one that I came across recently is Turkey's requirement that most (if not all) African countries' citizens and those of other select countries who wish to travel with an eVisa being "required to travel with an airline company which signed a protocol with the Turkish Foreign Ministry. At present, the airline companies that signed this protocol are Turkish Airlines, Pegasus Airlines, Onur Air and Atlasglobal Airlines." I find this one interesting, especially since it effectively shuts out foreign competition on Africa-Turkey traffic where eVisa applies. I hope that folks who get visas at embassies can fly non-Turkish airlines to get to Turkey.

What other similar policies are out there?
 
andrewmpll
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Re: Country policies/laws that benefit their local airline(s)

Tue Nov 14, 2017 8:06 pm

Is it not similar in case of aviation industry? Typical instance is chase between Airbus & Boeing. I think, that it is normal state of things - unless company provides workplaces in country and affects its economy, government will interfere more or less in such situation.
 
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Slash787
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Re: Country policies/laws that benefit their local airline(s)

Tue Nov 14, 2017 8:13 pm

India came up with this UDAN scheme which will help with the regional connectivity, Indigo ordered 50 ATRS and Spicejet ordered 25 more Q400's, so I guess thats helpful and beneficial?
 
dtw2hyd
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Re: Country policies/laws that benefit their local airline(s)

Tue Nov 14, 2017 9:06 pm

Probably Dubai takes the cake. Every regulation is tailored to suit Emirates. No labor protection laws, lax aviation regulator, zero % financing from regional neighbors, city leaders constantly scouring for liberal BASAs, and undisclosed arm length transactions to name a few.
 
Jayafe
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Re: Country policies/laws that benefit their local airline(s)

Tue Nov 14, 2017 9:41 pm

Spain grating exclusive usage to Iberia (and IAG later on for extension) of the new 7 billion euros T4 in MAD...
 
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alex0easy
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Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 12:08 am

berari wrote:
Certain countries have policies and laws in place that either intentionally or inadvertently support their own airlines.

One well known act is the US "Fly America Act" that requires the use of US air carrier service for all air travel and cargo transportation services funded by the U.S. government (certain exceptions apply.)

What other similar policies are out there?


China has similar rules about government-funded international air travel for business trips. See:
http://www.mof.gov.cn/zhengwuxinxi/caiz ... 89960.html

Basically it says the following three rules in selecting airlines and routes:
1. If your final destination city is served by a Chinese airline, you must fly the Chinese airline. So let's say if you're flying Shanghai-Los Angeles, you have to fly MU and not any of the US3. Or if let's pretend that no Chinese airlines fly PVG-LAX direct, you may fly SHA-PEK-LAX on CA and still no US3.
2. If your final destination city isn't served by a Chinese airline, you must fly a Chinese airline to that country and then transfer to a domestic flight. Say if you wish to fly Beijing-Dallas, you may fly CA PEK-IAH then UA IAH-DFW, but you cannot fly AA PEK-DFW direct.
3. If your final destination country isn't served by any Chinese airlines, then you must fly a Chinese airline to a nearby country and then transfer flights. So basically this means that anyone traveling to South America is stuck with CA's PEK-MAD-GRU route.
Note: Hong Kong and Cathay Pacific does not count as a "Chinese airline".
 
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TWA772LR
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Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 2:00 am

Fly America doesn't stop EK from actually operating the service on B6 tickets.

The most blaring example the OP is talking about is the bilateral between Canada and the UAE.
"It's not getting to the land of the nonrev that's the problem, it's getting back." ~~Captain Hector Barbossa
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Varsity1
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Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 2:11 am

dtw2hyd wrote:
Probably Dubai takes the cake. Every regulation is tailored to suit Emirates. No labor protection laws, lax aviation regulator, zero % financing from regional neighbors, city leaders constantly scouring for liberal BASAs, and undisclosed arm length transactions to name a few.


Agreed.

The airline is effectively the regulator and legislative body.

There isn't a rule in the UAE that doesn't benefit EK, including the slave like conditions of employees.
 
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FoxtrotSierra
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Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 2:51 am

dtw2hyd wrote:
Probably Dubai takes the cake. Every regulation is tailored to suit Emirates. No labor protection laws, lax aviation regulator, zero % financing from regional neighbors, city leaders constantly scouring for liberal BASAs, and undisclosed arm length transactions to name a few.


Yup, and that's why EK is as successful as it is. People, especially in North America and Europe criticize the lack of regulation in UAE, but the reality is, the less red tape, the better. Dubai is run by smart people and making sure that nothing hinders the aviation industry is part of their success. Dubai leadership often sums up their strategy in one sentence: "Create an environment where people can succeed." Based on where EK is today, I'd agree, and other countries should take note. That said, the UAE has major problems with the treatment of blue collar workers, but unlike western countries, the UAE is taking steps to reform and improve their problems over time. This is the primary reason the aviation industry has developed so quickly in the UAE. There is no red tape in airport expansion or new runways, no incessant ATC striking or union walkouts, no consensus based system to slow down expansion. Regarding the latter, I have talked to people high up at EK and what many people fail to understand is that consensus based systems would not have given you EK as it is today. I guarantee you that before Emirates, no one would have thought that having 100 A380's was a practical and successful business idea. Guess what, it is! And the only reason we now know that is because people in the Dubai gov't and at Emirates were willing to take that risk when everyone else would have voted it down if it was up to them. Emirates' existence, and by extension that of Dubai is a case study of a philosophy so different from that of the west, that it is ridiculous to compare the two. To their own benefit or detriment, western governments are absolute in their support for labor at all costs, and at any expense to the airline with virtually no room for compromise. The UAE, while far from the shining beacon of support for the workforce, are respectable and comparable in most areas to the US or EU if you have an open mind and don't constantly breathe Fair Skies propaganda material. They maintain a decent standard for their employees, but balance it with a much higher level of autonomy for the aviation sector, and that is because they have much more flexibility than the concrete ways of western govt's and the stiffed frustration of those airlines with their govt's lack of support for the aviation sector. Dubai and Emirates' coordination and are intertwined deeply, and that synchronization mutually benefits and supports the objectives of both. The infighting between the airlines and the govt's of the west is something that has been designed out of the equation in Dubai, and that is the result of smart leadership and smart policies. Whether you choose to accept that or not is up to you.
 
santi319
Posts: 421
Joined: Thu Dec 29, 2005 3:24 pm

Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 2:54 am

Varsity1 wrote:
dtw2hyd wrote:
Probably Dubai takes the cake. Every regulation is tailored to suit Emirates. No labor protection laws, lax aviation regulator, zero % financing from regional neighbors, city leaders constantly scouring for liberal BASAs, and undisclosed arm length transactions to name a few.



There isn't a rule in the UAE that doesn't benefit EK, including the slave like conditions of employees.


Agreed this post SCREAMS ME3 - and yes I know first hand former employees of some of those airlines.
 
dtw2hyd
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Re: Country policies/laws that benefit their local airline(s)

Wed Nov 15, 2017 11:19 am

FoxtrotSierra wrote:
................................... I guarantee you that before Emirates, no one would have thought that having 100 A380's was a practical and successful business idea. ....................................


I can guarantee you Emirates doesn't need more than 40xA380s. Let's not use the word success loosely.

Rest of your post, TLDR.

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