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Updated Saturday, November 21, 2009 2:20 pm TWN, Reuters

Germany tells non-EU airlines to raise prices

FRANKFURT -- The German government is putting pressure on airlines, including Dubai-based Emirates, to raise business class prices on some routes so they don't undercut European carriers. Emirates has complainaed to the European Commission and has asked to meet Germany's new transport minister, Peter Ramsauer, saying the move hurts competition and consumers' interests, Emirates' senior vice president Andrew Parker told Reuters on Thursday.

The German government said in a letter seen by Reuters that it was illegal for non-EU airlines such as Emirates to undercut the prices of other carriers on routes from Germany to non-EU destinations, citing its international bilateral air transport agreements and European Parliament rules.

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