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28 Air & Space Law. 1 (2015)

handle is hein.journals/airspaclaw28 and id is 1 raw text is: AIR L A ANIERICAN TiAR ASSOCINFION Regulatory Responses to the Challenges Facing Large Euro ean Carriers in the New Global Market By Martin Coleman T hese are unsettled times for the airline sector in Europe, as was highlighted by a letter sent in June 2014 to the European Union Commis- sioners responsible for transport and competition by seven leaders of major European airlines, including Lufthansa and Air France/KLM (but not British Air- ways).' The letter cited the serious threat posed to the EU airline industry by the excessive growth of third- country carriers supported by their governments as strategic industry The letter claimed that this govern- mental support severely distorts competition in EU markets, where deregulation has led to the removal of restrictions on capacity, frequencies, and destinations Shortly thereafter, in August 2014, Etihad, the Abu Dhabi-based carrier, confinned its acquisition of a 49 percent equity stake in Alitalia) Etihad plans to focus on long-haul routes, significantly increasing frequen- cies between Italian airports and Abu Dhabi to provide Alitalia's passengers with seam less connectivity to Eti- had's global network. James Hogan, the President and CEO of Etihad, pointed out that without Etihad's stake, continued on page 10 on Air and Space ................. N .. ........ ...... X , ............ . . . . . . . . . . . F o r u ni L a w VOLUME 28, NUAMIBER 1, 2015