Berlin tells Emirates to raise prices: ministry.

BERLIN: Dubai-based airline Emirates has been told by the German government to charge higher prices for certain business class flights out of Germany, a German transport ministry spokesman said Friday.

Both the Financial Times and the Financial Times Deutschland reported Friday that German authorities threatened to fine Emirates if they failed to raise prices on routes out of Germany to a number of non-EU countries.

"I can confirm this move," the transport ministry spokesman told AFP.

The spokesman said a letter had been sent to Emirates saying they would be fined if they practiced "unauthorized price leadership" on business class fares.

Following the warning, Emirates raised the price of business class tickets by 20 percent on some routes, according to the Financial Times.

Emirates wants to expand the number of routes its offers out of Germany but national carrier Lufthansa opposes the move, the paper reported.

"We are adamant this is selective and clearly an attempt by Lufthansa to pursue Emirates versus a legitimate policy," Andrew Parker, Emirates senior vice president, told the newspaper.

A Lufthansa spokeswoman denied Emirates claims while the German transport ministry insisted the move was consistent with EU rules.

German officials say non-EU airlines are barred from undercutting their EU rivals to destinations outside the 27-member bloc. -- AFP

Daily NewsEgypt 2009

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