EU sharpens competition tools to face Gulf carrier challenge

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The EU is sharpening its pencil in what appears to be an attempt to stem the growth of the Gulf carriers, should they be receiving state subsidies – something they vigorously deny. Reuters reports that the commission is working on a proposal to enable it to implement tariffs on airlines which distort competition through the use of subsidies or unfair business practices. But support for castigating Gulf carriers seems to be weakening in Europe – Qatar owns a chunk of IAG, while Lufthansa and Etihad are becoming increasingly friendly. If you can’t beat ‘em…