News Story - Emirates vs Canada - Article Example

Emirates executives have argued that such an expansion could potentially create 2,800 jobs across Canada and generate up to $480m in additional economic activity”(The Economist). This proclamation did convince the premiers of Alberta and British Columbia to certain extend. However, Air Canada being the only airline flying to South Asia demanded the increase in UAE airline would only benefit UAE and will hurt Canada financially. The Canadians pointed out that the UAE airlines want to carry passengers to Canada from India and Pakistan using Dubai as hub.

The author comments that the gulf airline has proved to be successful even during the recession and captured the travel market throughout Asia, Europe and America. According to some officials the treatment of Dubai government towards airline industry is not up to the mark. “Most governments around the world treat aviation as a pariah, choking its growth with costly, misdirected regulation, instead of adopting policies that recognize its considerable socio-economic benefits and support its sustainable growth”(The Economist).

Moreover, the tax policy also creates hindrance to the growth and development of airline industry. Critical analysis of the dispute between Canadian and U.A.E airlines A) Main reason for dispute: The dispute between Canadian and U.A.E airline companies has created big problems between the relationships of these countries. The main thing for despise between these countries could have been the immediate action of the U.A.E. government to close down the air base. U.A.E., being the fastest going airline industry had landing agreements with Canada for the prospects of growing their market share as airline industry.

The main reason for the dispute between these two nations started with the UAE government asking for more landing rights from their Canadian counterparts. According to the landing agreement signed in 1999, the Emirati airline was allowed to fly only 6 times a week .But, during 2007, UAE airline officials demanded an increase in the flight traffic to boost up the sales potential. This request by UAE has undoubtedly irritated the Canadian officials; nevertheless they did reconsider the request delivered by the UAE officials.

They have understood that by giving extra landing rights they can very well be benefited in expanding their travel market. This negotiation between the two countries broiled for many years without ending in any agreeable outcome. However, the problem aroused in 2010, when the Canadian military approached U.A.E to share their military air base to service its operation for Afghanistan mission. U.A.E took this opportunity to show the vengeance by giving a non -renewable three- month lease to the Canadian military.

Change in the attitude of Canadian authorities In the November of 2010 it was reported that there was change in the minds of Canadian official as to the expansion of landing rights to the U.A.E. Canada was ready to offer more landing slots to U.A.E in areas like Calgary and Vancouver considering the business prospect it could bring to their country. Nonetheless, U.A.E found out that there was a decrease in the capacity offered by Canada in air passenger travel which led to their offence. If one look at the whole situation, U.A.E.

was right in demanding additional landing rights as this was useful to both the countries in expanding their travel market. Since U.A.E had a considerable amount of Canadian citizens, an addition in the flight