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Reports doing the round in the airline industry suggest that a war of words has broken out between the two major carriers Qantas and Emirates. Qantas chairperson has been quoted as saying that the state-pampered Emirates Air does not operate in the level-playing field. That is to say, Emirates is not required to compete on the same terms as commercial-run airlines.

The government-ownership provides a sovereign risk rating that allows the airline to contract debts at a much higher level than can be sustained by a publicly listed carrier like Qantas. The crux of the problem appears to be the Emirates' bid to secure rights for 84 services a week between Dubai and Australia — double the present number. Emirates has retaliated to Qantas' criticism by saying that the Australian airline's argument against competition is in favour of high prices.

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