Emirates urges closer EU scrutiny of alliances

Airlines that spent years ramping up their international operations have been hit by the recession that has hammered demand for overseas travel.

In response, many major airlines are forging partnerships that allow them to cut costs and capacity.

However, such alliances and growing government support for consolidation to avert corporate failures, could have an adverse long-term impact on independent airlines, Andrew Parker, a senior vice president at Emirates, said.

"From cooperative frameworks, alliances have today become sophisticated, interwoven, often immunised vehicles with enormous market power.

"The consequences of changing alliances are not fully considered. I would encourage policyholders to look deeply into this."

The European Commission is now probing Star Alliance members Air Canada, Continental, Lufthansa and United Airlines over possible anti-trust breaches.

Parker said the European Union executive should also scrutinise the effectiveness of anti-trust concessions offered by carriers hoping to win approval for mergers and acquisitions.

Dubai-Beirut flights increased

With thousands of Middle Eastern expatriates returning home for the long hot summer, Emirates plans to introduce nine more flights between Dubai and Beirut during August.

The additional flights will give the route an important boost during one of the year's busiest months.