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Mon 14 Oct 2019 12:14 PM

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US-EU jet tariff war will drive up travel costs, Emirates airline warns

A tit-for-tat imposition of import duties on Boeing and Airbus planes would ultimately increase the cost of planes and hence ticket prices, Sir Tim Clark said

US-EU jet tariff war will drive up travel costs, Emirates airline warns
Sir Tim Clark said Emirates earnings have “considerably improved” from a year ago.

A face-off between the US and European Union over jetliner tariffs will make travel costlier for passengers, the world’s biggest long-haul airline has warned.

A tit-for-tat imposition of import duties on Boeing and Airbus planes would ultimately increase the cost of planes and hence ticket prices, Emirates President Sir Tim Clark said Monday in Dubai.

“In the end, the prices of what we get charged as a result of tariff imposition will be passed through as they have to, to consumers, so prices are likely to rise,” Clark said in a speech at the 2019 Aviation Show.

WTO gives final approval to US retaliation in Airbus case

Earlier this month, a WTO arbitrator gave Washington the green light to slap tariffs on $7.5 billion worth of European Union imports

The US has said it will introduce a 10% levy on European jetliners following a World Trade Organization ruling that Airbus benefited from illegal state aid.

The WTO is considering a similar case against Boeing that’s due to be decided next year and the EU says it will introduce tariffs of its own if the US acts now.

Clark said Emirates earnings have “considerably improved” from a year ago, though the collapse of Thomas Cook Group Plc has weighed on the Dnata ground-handling division, which counted the UK tour operator as a client.

Emirates has curbed capacity and rationalized routes in response to a slowing economy, which has seen “a flattening in our growth,” the executive said.

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