Abu Dhabi: The UAE is looking to ramp up Air Service Agreements (ASA) with South Korean authorities in order to increase the frequencies of flights operated by UAE-based airlines to the Asian country, especially its capital.
According to Sultan Bin Saeed Al Mansouri, Minister of Economy, the current number of flights operated by national airlines to South Korea is “very limited” as officials from both countries have not yet been able to reach an agreement on air services.
Speaking at the UAE-Korea joint economic meeting in Abu Dhabi on Monday, the minister said that while economic cooperation and trade ties between both sides are very strong, aviation is the one sector that is lagging in agreements.
The meeting was attended by a delegation from South Korea headed by Ilho Yoo, Deputy Prime Minister and Minister of Strategy and Finance.
“We requested to have a meeting as soon as possible between civil authorities from both sides. [The South Korean delegation at today’s meeting] will take, as they promised, the viewpoint of the UAE to the ministry of transportation in Korea to arrange for a meeting as soon as possible. So the procedure is we will also have to write them, requesting an ASA meeting to discuss this also,” he told reporters.
Al Mansouri pointed that UAE carriers had certain requests that Korean officials have not yet agreed to.
“What the UAE is requesting is additional flights. [That number] is up for negotiations but we need at least more than what we have right now. I think the issue is mainly because of the situation with Korean Air, and our airlines are very competitive; wherever we go, we tend to take the market, so competition is there,” he said.
As matters stand, Etihad Airways and Emirates Airlines each have one daily direct flight to Seoul.
But the UAE carriers’ troubles in gaining access to capital cities aren’t restricted to South Korea as they face the same battle in Germany. As per the agreements currently in place between both countries, UAE carriers can fly to multiple German cities but not Berlin.
Last week, a delegation from the UAE that included Al Mansouri visited Berlin and discussed the issue with German authorities.
“The delegation was visiting as part of the Arab-German Business Forum, but I had some meetings with representation from their parliament — it was the former minister of transportation. I opened the subject (of air service agreements) on Berlin mainly, and their excuse for that is that the airport is not open yet and they need to finish it as soon as possible and then we’ll look into this issue,” he said.
Across the pond, in the US, Gulf carriers have an even bigger battle over market share.
Ever since US airlines alleged over a year ago that Emirates, Etihad, and Qatar Airways received over $40 billion in subsidies from their respective governments, the war of words between all parties hasn’t stopped.
“On the US side, with all what has happened, it has cooled down, but we came to an agreement — a gentlemen’s agreement — to sit and discuss this eventually. We’re waiting for a reply from the American side about some of the points raised. Once we receive them, we’ll arrange a meeting to discuss this and explain our position,” Al Mansouri said.
During the meeting, both delegations signed three memorandums of understanding covering the Small and Medium Enterprise sector and innovation, seawater desalination, and intellectual property.
Al Mansouri sees oil prices at $60 in H2
Abu Dhabi: Sultan Bin Saeed Al Mansouri, the UAE’s Minister of Economy, said he expects oil prices to reach $60 in the second half of this year, reiterating his outlook for a three per cent rate of economic growth.
The comments on oil prices echo a similar sentiment from other UAE officials such as Ali Al Mansouri, chairman of the Abu Dhabi Department of Economic Development, who are bullish on oil.
“We’ve seen an improvement in oil prices, which reached $50, and as the Minister of Energy said, they can also reach $60 or more and I think this could happen this summer especially since energy consumption rises in the summer. I’m optimistic that oil prices will rise to some extent,” the minister of economy told reporters.
He added that he, however, did not expect this year to see the high growth rates seen globally over the past years.
