BA's Eddington Says US 'protectionism' Props Up Failing Airlines

The European Union had been much better at turning down requests for help from failing airlines, he argued, with the 'shaming exception' of Alitalia. 'The US airlines are dumping capacity on the north Atlantic, distorting competition... They struggle to compete and, at some, the workforce has been demoralized. The more the government has tried to help, the worse things have become.' 'The lessons America has been imposing on third world markets with an almost pitiless ferocity apply to America just as much.' Eddington said the global airline industry, which had sales of 400 bln usd last year but losses of 5 bln, needs to consolidate. 'The international industry is structurally unsound. There are too many flag-carrying fleets making vanity flights around the world.' He said the world does not need 300 airlines, which only exist because of 'political demand,' and called for easier rules on takeovers and 'genuinely open skies.' http://www.forbes.com/markets/feeds/afx/2005/09/22/afx2240404.html

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