Intercultural Business News

Emirates has offered flights from Germany to South Africa and Singapore for less than competing German airlines. Germany has demanded they increase their fares, which some say gives Lufthansa an advantage.

A branch of the German Ministry of Transport, Building and Urban Development has forced Dubai-based airline Emirates to raise its ticket prices on flights from Frankfurt to Johannesburg, and from Hamburg and Berlin to Singapore.

Other airlines from outside the European Union are affected by the action, but ministry spokesman Ingo Strater did not say which ones. Emirates has complained about the action and claims to have brought its case to the European Commission in Brussels.

Will Lufthansa Benefit From Forced Price Hike?

German air traffic law does not allow airlines based outside the EU to offer flights destined for non-EU countries at lower prices than their European competitors. Neither does European law. The action was a result of random spot checking of prices, according to Strater.

“EU airspace is liberalized, but that doesn’t apply to non-EU airlines,” he said.

One function of the Ministry of Transport, Building and Urban Development is to ensure there are no “market disturbances” or “lasting impairments” to the interests of public transportation.

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Retired ocean liner Queen Elizabeth 2 looks to be headed for South Africa as a floating hotel for next summer’s football World Cup. The current owners, Nakheel, a subsidiary of Dubai World, planned to refurbish the QE2 and have it berthed at the man-made Palm Jumeirah island in Dubai, but the recession has hit the company just like many others. As a result, they are looking for ways to make additional money off the famous ship, and South Africa is in need of additional hotel rooms for the World Cup.

Could Dubai based QE2 be heading to South Africa?

The Johannesburg newspaper Business Day reported that Dubai World is looking to berth the ship at Cape Town, where it is part owner of the V&A Waterfront. However, South Africa’s National Port Authority indicated that several approvals were necessary prior to any decisions being made, according to spokesman Ronel Bester.

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