The CEO Poll: Air war
CEOs side with Canadian officials in airline dispute with the U.A.E.
Author:
Joe Castaldo
Date: November 12th, 2010
Publication: Canadian Business Online
The United Arab Emirates is engaged in a heated battle with Canadian
officials to gain increased landing rights in Toronto for its airlines.
But Air Canada has objected to more traffic from Emirates Airlines and
Etihad Airways. Canadian CEOs, while typically in favour of greater
trade liberalization, have cast a skeptical eye toward the U.A.E.,
according to a recent web poll conducted by Compas Inc., and view it as
an unreasonable trading partner.
The dispute over landing rights is believed to be the cause of a
request from the U.A.E. that Canada vacate an airbase in Dubai called
Camp Mirage. That action revealed the Emirates to be an “untrustworthy”
trading partner, according to nearly two-thirds of the respondents.
“If the Emirates do not want us to use their facilities, even more
reason we should withdraw from the area completely,” wrote one panelist.
“The Emirates response was way too harsh, and tends to indicate the
culture of their control over desires and preferences,” wrote another.
On balance, however, the CEOs are in favour of more competition in
the airline industry. More than half believe that foreign airlines
should have unrestricted access to operate here, provided Canadian
airlines have the same rights elsewhere. Competition would result in
better prices and customer service for consumers, as well as an
increase in the frequency of flights, the respondents believe.
“The Canadian airline industry — especially Air Canada — has never
been interested in competition,” wrote one CEO. “I suspect the
government plans to keep it that way.”
Others saw the competition issue as more nuanced, given the
economics of the airline industry. “More competition is usually a good
thing for consumers,” according to one respondent. “However, with
paper-thin margins in the airline industry, [our] government must
protect Canadian businesses.”
To view complete results and additional polls, please click here.
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