Rumors will surface any and every time the under dog starts to show headway. This is true in every industry and in every part of the world.

However, I wouldn't, for a moment, think that the ME governments are trying to push European airlines out of business.

You have to remember, that although The Mid East owns huge part of the crude oil in the world, the refined jet fuel used in airplanes is for the most part purchased from western nations, due to a lack of refinery's in the Middle east (ironic I know).

Therefore, ME airlines buy the refined product at the same rates as those of European airlines. The difference being, since the jet fuel is exported, no tax's are imposed, as is the case for European/US based carriers.

There is also more than just cheap labour/oil that allows these airlines to compete. Consider the following:

1- Economic growth in the ME, resulting in MUCH higher inbound travel to this part of the world. Euro/US airlines don't offer enough frequencies, resulting in ME airlines capturing the growth, at premium prices nonetheless.

2- Proximity to India, which is growing exponentially, resulting in further traffic for these Airlines.

3- ME travelers who traditionally traveled on Euro/US airlines to Europe/US because of the superior service at the time, are now flying ME airlines because of THEIR superior offerings now.

4- Newer and more enjoyable aircraft.

The rumors you speak of, are most probably coming from adversely affected airlines due to the above points, and are trying to play on your sense of patriotism !!


Just my $0.02