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Liberalization

Liberalization

We continue to campaign for open skies

A core part of our strength as a business stems from the "open skies" environment at our main operating base, Dubai International Airport, where we compete with over 150 other scheduled airlines.

We fully support the International Air Transport Association (IATA)’s Agenda for Freedom program, which seeks to promote consensus among liberal-minded governments to reduce the barriers to cross-border business in the international aviation community.

After its initial conference in October 2008 in Istanbul, in which the UAE participated, the IATA has focused on drafting a Statement of Principles on liberalization and undertaking studies on the potential economic impact of greater commercial freedom in different national markets. This research into the impact of an "open skies" approach to international aviation follows a similar study, "Economic Impact of Air Service Liberalization," conducted on behalf of numerous industry organizations, including the Airports Council International, World Tourism and Travel Council, and IATA, which came to the following conclusions:

  • Liberalizing just 320 of the current major restricted country-pair routes could increase traffic by 63%. This could create 24.1 million additional jobs and generate an additional US$490 billion of GDP, equivalent to an economy the size of Brazil.
  • Traffic growth subsequent to liberalization of air services agreements between countries typically averaged between 12% and 35%, significantly greater than during years preceding liberalization. In a number of situations, growth rates exceeded 50% and in some cases reached almost 100% of pre-liberalization rates.
  • The creation of the Single European Aviation Market in 1993 led to an average annual growth rate in traffic between 1995 and 2004 that was almost double the rate of growth in the years 1990 to 1994. This produced about 1.4 million new jobs.

Our core philosophy relating to international aviation policy and a move towards open skies can be summarized by a quote from the President of Emirates Airline, Tim Clark:

“We know there has been clear evidence of a progression towards aero political multilateralism in the past 20 years. More and more countries are recognising that liberal air access has a multiplier effect on their economics and protection of their national carriers no longer stacks up in the cost-benefit equation or serves their national interest. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aero political protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.”