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EU to tackle unfair airline competition

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EU to tackle unfair airline competition

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Old 10th Jun 2017, 16:48
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Piltdown man, you do talk some rubbish. For a start, the expats in the ME aren't using home nations' resources or services. If they're not, why should they pay home taxes? As it happens, many do continue voluntary payments to social systems like the NIC to continue payments to their pensions. As for their employers not paying taxes, the do pay education, housing and medical benefits, so that evens out.

Perhaps you should be looking a little closer to home, at the P2F, zero hour contract and other "atypical employment" schemes of low cost airlines, where these social contributions and taxes are often missing entirely, and who circumvent the law to avoid proper employment or union representation.
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Old 10th Jun 2017, 17:34
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AS - We don't need the ME3 for anything, they give us nothing so they can either cough up or bugger off. But I'm in total agreement with you on P2F and other scumbag employers who also don't play by the rules. Maybe we could export them to somewhere where their attitudes are considered enlightened. But if they stay behind, their circumvention of employment laws and tax evasion should be criminal offences, punishable by fines and imprisonment. Company executives don't like prison much.

Last edited by Piltdown Man; 10th Jun 2017 at 18:55.
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Old 11th Jun 2017, 08:07
  #23 (permalink)  
 
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Pilt, it's market forces. If the EU airlines don't have the spaces for everyone and the locos don't offer good packages, then where do you expect pilots to go? Should they accept lower conditions and work for unscrupulous employers just to stay in a high tax environment to pay for people who don't work, students, health tourists and so on? As long as people pay what liabilities they have, what's the problem? Those who continue to pay social contributions will get their full pensions, and those who don't will have reduced state pensions based on prior contributions. So where is the problem? Let's face it, AF, Olympic, Iberia and others all go state aid even when it was made explicitly illegal, and I suspect AF and Alitalia still do. Even KLM was helped by the EU allowing it to buy up AF after BA were blocked from doing so.
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Old 11th Jun 2017, 14:45
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My beef is not with the employees of the ME3 carriers. Their pilots have got to be some of the poorest rich people around and the treatment of cabin crew/service staff is close to despicable. These people have to work to put food on the table and get their kids through school. They have had to take jobs wherever they are. As I said earlier, the real rogues are in the EU and the ME3 have taken advantage of an open goal. The problem is, pressure is now being placed on the scum in the EU and as a result they may have to install a few goalkeepers.

Even KLM was helped by the EU allowing it to buy up AF after BA were blocked from doing so.
Nearly. AF bought KLM (well, swapped shares. 10 AF vs 1 KLM). The merger (or acquisition) of KLM by BA didn't go ahead because BA refused to guarantee that existing KLM board members would retain their seats.
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Old 17th Jun 2017, 11:05
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"The European Union proposed new rules on Thursday to more effectively tackle alleged unfair competitive practices by foreign airlines as it seeks to ensure European carriers can withstand fierce competition overseas..."

It is alleged that there are some unfair competitive practices closer to home. Some employment structures offer distinct advantages in cost base compared to those who use more conventional employment contracts. Surely the EU's own back yard should be sorted out first.
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Old 17th Jun 2017, 17:21
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They should look into the practices of ltd companies and crews....

All tax dodging, for the pilots until expenses used up, and social dumping by the airline.

Get their own house in order first, these loco practices are damaging for people, countries, lowering tax revenues for goverments, and lining some rich shareholders, no doubt most of whom are not eu based....
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Old 17th Jun 2017, 20:34
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Originally Posted by GrahamO
Can someone explain in simple terms how exactly the ME3 have an unfair advantage, other than being in a low tax environment, not paying much for staff and delivering a good product ?

I read the Reuters article and can see no mention of how an unfair advantage is gained, in practice and just some waffle about what happens if there is any evidence ?
Finance at 0% never repayable which means the bottomless pit just gets topped up when required.
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Old 17th Jun 2017, 20:37
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Originally Posted by Piltdown Man
Let's look at other regions. Like the former Eastern Bloc, the Americas, Russia, Asia etc. Each of these regions have different social norms, different religions and trading practices. But at their heart they have economies that are worth trading with. The UAE does not, so what's in it for us? Even the Chinese are putting something back into the African hosts whose countries they are currently raping.
Remind me how well the benolvent states of Europe treated Africa.
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Old 18th Jun 2017, 12:28
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The EU could begin by requiring airlines operating in EU airspace to have signed, and demonstrably comply with, various United Nations human rights and labour bills.

That would put an immediate end to most of these issues.

In fact, wouldn't it be nice if all European governments required that to be the case before accepting financing, shares purchases and the like from any such country.
Ooops, didn't Qatar just buy a substantial portion of the national gas infrastructure?!
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Old 18th Jun 2017, 12:50
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Originally Posted by Miserlou
The EU could begin by requiring airlines operating in EU airspace to have signed, and demonstrably comply with, various United Nations human rights and labour bills.

That would put an immediate end to most of these issues.
No it wouldnt as the ME region is based upon low/zero taxes and PAYG for anything you want, not breaching anything. The UN doesnt tell anyone how much they should pay, nor how long they should work, just that they should be paid and paid on time. The UN doesnt say what interest rates should be charged, and it certainly doesnt tell anyone how to run its business. In fact, the EU airlines would be far better off adopting ME practices of paying for actual performance, not just for turning up for work and expecting an annual pay rise for breathing another year.

The vast majority of people in the ME are more than happy to not pay for a bloated European bureaucracy and only pay for what they use, as they end up with far higher disposable incomes. They come to the ME to get away from the bloat of Europe, or the poverty of their own countries and almost always come out better than staying at home.

The EU just want to drag everyone else into its bloated, inefficient cosseted state of affairs as its killing itself slowly with bureaucracy and wants to drag everyone else down with it.
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Old 18th Jun 2017, 18:29
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Originally Posted by Miserlou
The EU could begin by requiring airlines operating in EU airspace to have signed, and demonstrably comply with, various United Nations human rights and labour bills.

That would put an immediate end to most of these issues.
First country to object lies Westward of the current EU with its capital in Washingto DC.
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Old 19th Jun 2017, 05:55
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Luckily the EU has outstanding morals and none of it's members have embraced globalisation. You would never see an EU-based company taking advantage of cheap labour and non-domestically produced goods.

Take EU airlines for example. They only buy fuel from oil sourced organically in pretty villages in the French countryside, and all their uniform materials, passenger food, aeroplane parts, IT etc is all hand-made traditionally by locals with all the money being pumped straight back into local regeneration. You never see poverty in the EU because it works so well and we don't live in glass houses and throw stones.

Just off to buy a Starbucks coffee on the way to paying my taxes. I know I'll get served by Johnny English and the company will pay its taxes straight into my wonderful government tax pot so I can enjoy benefits such as wonderful state health care, regular waste management etc.
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Old 2nd Jul 2017, 07:45
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The fact that others (Starbucks,Amazon) seem to get away with paying a minuscule tax rate doesn't even begin make it a level playing field with the Middle East airlines. There's almost unlimited access to cheap (free?) capital. Labour costs which reflect medieval working practices (not hyperbole; In Qatar it is a criminal offence to leave your employment, even with wages unpaid for years) and finally, almost zero tax and social costs.

Regarding the amount of APD collected on EK flights, that argument only holds water if we assume aviation grinds to a halt if with a level playing field.
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