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The War of Two Worlds in the Modern Passenger Aviation Field

Along with their personnel of all sorts, the Arab companies engage in long term policies, pay high salaries, have excellent training and retraining, and offer quality treatment towards the customer-passenger, without limits.

The Arab companies, Emirates Airlines, Etihad Airways and Qatar Airways, have begun an unprecedented confrontational competition with the American Aviation giants. And therefore, the Americans experience the heat of the above three Airlines. Because, armed with an extreme financial liquidity and innovative management, they have broadened their global network.

This is achieved by placing huge orders, of mainly transatlantic Aircraft, (wide – body), where currently 1-2 Aircraft are being delivered monthly. And beside the above firm orders, there are additional optional orders for several hundred new aircraft for the foreseeable future.

These financial losses of the US Air carriers, compel their executives to utter excuses, that are very weak from a business standpoint, like putting the blame on the terrorist acts of September 11th 2001. At the same time, mainly American and United, not unlike others, strongly urge their Government to intervene, by canceling the increase of flights of the aforementioned three (3) Arab companies to the United States in general. Their main argument are the rules of unfair competition, supposedly violated by the Arab Airlines.
But where is this violation based on?

On the subsidies, which they claim that these airlines receive by their governments, subsidies exceeding 45,00 – 50,00 billion USD, in order for them to increase their fleets. The Arabs, of course are ready to counterattack, claiming that the American Airlines were also generously subsidized by the US government, following the Twin Towers. They counterargue that the true cause of this advancing dynamic are the better prices, the better offered “service on Board”.

And it is true that their services in all aspects are of the highest level, regardless of passenger class, proportionally of course.

At the same time their fleet is exceptional, and the ground services and the VIP and economy passengers room benefits and simply enviable.

Their pilots have excellent experience, and their Geopolitic coverage, mentioned above (network), is impeccable. Of course, both Emirates and Etihad have CEO’s, who are not Arabs. Emirates’ T. Klark is British, and Etihad’s James Hogan is Australian. These particular Senior Managers have English as their mother tongue and are familiar with the American mindset. Consequently, speaking the same “business language” with the competitors worldwide, they hit, Americans mostly, where it hurts. In the comparative quality, the economy, the expansion of the product. In advertising opportunity and ingenuity. In the maximum capitalization of all the financial and other relevant factors that ultimately make them unbeatable. As for the CEO of Qatar Airways, the Qatari Akbar Al Baker, being American bred and having studied in the US, fights his company’s competitors face to face and spares no effort nor lacks innovative ideas in order to outflank them.

Along with their personnel of all sorts, the Arab companies engage in long term policies, pay high salaries, have excellent training and retraining, and offer quality treatment towards the customer-passenger, without limits.

Of course, particularly the flying personnel, which mostly comes from European and other countries outside the Arab world, lives, (especially women), with some limitations, when being locally stationed, since the cultural liberalism in general in the Middle East has over-conservative roots, ethics, mentality.

But when one chooses better working conditions, one knows well that the price may be paid in various other areas of privacy, ie. personal life.

A fundamental rule. One must give in order to get. What matters is if the final result expresses you as a person and professional.

What ultimately counts is that the Gulf companies have won the battles anyway and constantly increase their shares in the Aviation war. And finally, is difficult or impossible to lose in this mega-war, as long as their petrodollars flow mostly to American, but also to the European passenger aircraft Construction Groups.

And the battles are raging relentlessly, with the parameter of the oil price currently working in favor of the three (3) Mega Carriers of the Arab side.

Emmanuel A. Gyzis is Senior Management Firm’s Member at Emmanuel A. Gyzis & Associates LG.

Managing Partner - Emmanuel A. Gyzis & Associates Law Offices | + Posts

Emmanuel A. Gyzis is managing partner of Emmanuel A. Gyzis & Associates Law Offices.

He was born in Athens, Greece, 13 January 1947; admitted to Athens Bar Association 1974. Education: University of Athens, Law School (1972), London, (L.LM. 1980), specialized in Aviation Law and originally worked in the respective field on behalf of British Tour Operators and Charter companies. 

With longstanding journalistic and writing activity, his articles have been published in financial newspapers and magazines specialized in Aviation and Tourism. Author of pioneering monographs on the development issues of Olympic Airways (1989), he has published during a course of many years, a series of articles regarding its viability, its position in the international environment, as well as for other private airlines in general, while at the same time he participated in relevant International and Greek Conferences and Organizations. Successful and long-term engagement with issues regarding private airports / heliports, Low Cost Carriers (LCC), Aircraft Fractional Ownership, Ground handling matters. At his law firm “EMM. GYZIS AND ASSOCIATES”, together with a group of specialized associates he deals mainly with aviation law issues (cooperation with construction companies for commercial aircraft and leasing companies) and tourism law issues, specializing in mass tourism from/ to Greece and occasionally cooperating with Tour Operators. Since 1993, he has founded a number of Greek and foreign airline companies, on behalf of his clients, in accordance with the applicable legal status. He has participated in committees for the drafting of legislation regarding air transport, such as private airports, the Presidential Decree for private heliports and the Basic Legislation of the Aviation Code and he is the General Secretary of the Hellenic Aviation Society. For many years, he has been studying emerging markets, as a consultant for foreign companies, which plan to invest worldwide.

LANGUAGES: English.

MEMBER: Athens Bar Association, International Bar Association, European Society of International Law (ESIL), American Society of International Law (ASIL), British-Hellenic Chamber of Commerce, Greek-American Union, Hellenic Aviation Society.

PRACTICE AREAS: Aviation Law, Aerospace Law, Tourism and Transport Law, (European) Commercial and Company Law. Arbitration. Establishment and Operation of foreign companies in Greece. Project Finance. Free Movement of Capital. Privatization. Foreign/ Hotel Investments. Mergers and Acquisitions.

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