Lufthansa's brave if hardly surprising attempt to formally challenge the right of a Gulf-based airline to bite deep into EU territory on competition grounds is certainly not without dangers but it is nevertheless welcome for the debate that it raises. At issue for Lufthansa is the Abu Dhabi-based Etihad Airways' plan to invest in the long struggling Italian carrier, Alitalia. Lufthansa isn't alone amongst the band of theoretically deregulated EU carriers fearing that allowing state-owned Gulf carriers, such as Etihad, to acquire stakes in EU-based carriers could have a serious impact on competition. The question is whether they are right?
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