The Canadians are afraid to compete because AC's product simply cannot compare to EK's product. The sad thing is that this severely limits options for easier connections to the ME and beyond for the Canadian citizens (who have a right to have more choice and use of their own discretionary spending). Perhaps AC should buy some A380s or offer far better service than current levels to compete better?
To sum up, I guess you could say that the Canadian HOSERS are getting HOSED in this case by their own protectionist, restrictive, running-scared government... Yeah, pretty pathetic.
No wonder Qatar and others in the ME are using trade (i.e., potential order of Bombardier C-Series aircraft) and resulting Canadian jobs in their negotiations with the Gov't. If Germany gives them more problems, perhaps more Boeing orders will result in the future. Trade is a two-way street.