INSIDE Europe, the regulatory system has radically
changed in the last few years. In line with former EU President Jacques Delors'
vision of Europe, backed by all the major European countries, Europe decided to
dismantle all its regulatory barriers and create a huge single market among the
European countries. This strategy - that of a Single Market - has now been
applied to European air transport. For the last 10 years, there have been no
regulatory barriers. Any European carrier benefits from total freedom to
acquire traffic rights and establish itself in another European country.
Contrary to preconceived ideas, there are no more protectionist barriers inside
Europe.
Tomorrow, Lufthansa or British Airways can launch a new
service between Paris and Rome and AF can do the same between any two European
cities. And it is because of this liberalization of the European market that
low-cost carriers have been able to establish themselves and grow in the
European market.
Ever since the 1st of January 1993, all European
carriers have known that the days when European air transport was organized
around national champions are over.
This is because the regulators themselves encouraged
the emergence of major
European players to match the size of today's European
market, by creating a competitive environment.
So why did Air France have to wait 10 years - that is
to say, from 1993, when the new principles of the European regulatory system
were designed - to 2003, date of the announcement of the first cross-border
merger with KLM ?
This gap is certainly due to three major factors: the
first is very human - the force of habit. After decades of operating in a
highly regulated framework, it took the prestigious European flag carriers a
long time to realize that things had changed, and that they would have to
change with it. It was a painful process for all but KLM, who immediately
understood the need for change.
The second factor is rather more legal. Today Europe
only recognizes one reality- a European air carrier. Whether the operator is
Spanish, German or British is irrelevant. It's a European carrier.
However, all the non-European countries (for example
Brazil, USA, Chile, etc.) refuse to recognize the European status and only take
into account the nationality of the carrier. Consequently, if, for example,
British Airways were to take over Iberia, a non-European country could say that
they will withdraw the traffic rights they gave to Spain, because they will now
be exploited by a British and not a Spanish carrier. This major contradiction
between European and international law, which still exists, continues to hamper
mergers and groupings.
The third factor is of a more emotional nature. These
flag carriers embody the spirit and pride of a nation. They are often an
integral part of the history of their country and the people remain extremely
attached to them. The extraordinary adventure started by Albert Plesman in 1919
is part and parcel of Dutch history - as is that of Didier Daurat, Mermoz and
Saint Exupéry in France. The Chairmen of these airlines have always
feared - and quite rightly so - the negative reactions of the nation's citizens
or the airline's staff. They would no doubt have considered these mergers as a
form of betrayal of the vital interests of their country.
|
|
