UAE should revive landing rights push with Canada

Tightening business ties between the UAE and Canada may smooth the path for the Gulf state to press its case for additional landing rights for its airlines, the head of the Canadian Business Council of Abu Dhabi said. Deals such as the launch of a $1bn real estate fund by Canada’s Brookfield Asset Management and state-controlled Investment Corporation of Dubai hint that the diplomatic spat between the two countries may be softening, said Karl Tabbakh. “My perception is that, from speaking to our members, the Canadian business people are making the difference between the business issues and the diplomatic issues,” he said. “I think you are seeing quite a lot of interest from Canadian companies into this market and I think [the landing rights] issue has not been played up in the same way in Canada as it has here.” Relations between the oil-rich UAE and Canada deteriorated rapidly after Canada’s transport agency in November refused to give Gulf carriers Etihad and Emirates new landing rights. The Gulf state retaliated with the closure of Camp Mirage, a secret military base located outside Dubai and used to supply Canadian troops in Afghanistan. In December, the UAE Embassy announced Canadian citizens would no longer receive free visas. Instead, tourists must now pay up to $1,000 Canadian dollars to enter the country. The move led to a decline in the number of Canadian firms attending trade shows in the Gulf state, Tabbakh said. Canadian Prime Minister Stephen Harper handling of the political row divided opposition MPs with foreign affairs spokesman Bob Rae accusing him of “bumbling” and of risking a $2bn bilateral trade relationship. But the collapse of Harper minority government in March may mean the UAE authorities would have a greater likelihood of success if they revived the issue of landing rights, Tabbakh said. “Every time I have the opportunity to mention this to any member of the government we stress the fact that if we were to have easier links and connections into Canada, not only to Toronto but to Montreal and Calgary, this would be extremely welcome,” he said. The Harper government’s stance was, in part, derived from an attempt to protect flag carrier Air Canada from the ambitious expansion plans of the UAE’s state-backed carriers. “I am hoping that now that the Conservative government is in place for a long period of time that they will look at this issue and they will reopen the discussion with the UAE so we can find an amicable solution on both sides.” Qatar Airways said in June it would press for daily flights to four cities in Canada in a bid to muscle in on national carrier Air Canada’s long-haul market, following its debut earlier this year. CEO Akbar Al Baker said the airline's entry into the Canadian market was a significant step in its expansion strategy, and he hoped it would be the start "of more things to come in Canada".