Air France - KLM wants suspension of EU’s Qatar aviation treaty over corruption fears

Franco-Dutch airline conglomerate Air France-KLM is calling for the suspension of an aviation treaty between the European Union and Qatar “with immediate effect.” The demand was made on Wednesday following the dismissal of a senior official involved in the agreement’s development in connection with corruption allegations.

The treaty gives Qatar Airways unfettered access to airports in the European Union. The corruption claim raises serious concerns about whether the treaty was concluded fairly, said Air France-KLM, along with other European airlines.

In 2023, the European Anti-Fraud Office (OLAF) opened an investigation into the top aviation official at the time, Henrik Hololei. The investigation focused on his acceptance of flights and accommodations paid for by Qatar or other lobby groups.

Hololei resigned at the time but later remained involved as an advisor. The Estonian was outright fired by the European Commission at the end of January.

“I am disappointed but I accept the decision of the Commission and I’m happy that this long process has finally come to a conclusion,” Hololei told Politico on Jan. 29. The news outlet said its questions over Hololei’s involvement in the Qatar deal led to the investigation in the first place.

Air France-KLM believes Hololei’s dismissal at the end of January for violating integrity regulations affirmed the European airlines were justified in being concerned about corruption and influence brokering. “Full market access must never be the result of compromized negotiations,” the company stated.

The 2021 aviation agreement with Qatar has long been criticized by the European aviation sector. They fear unfair competition because airlines from outside the EU are not subject to the same strict rules regarding State aid and sustainability.

European aviation lobby group European Network Airlines Association also called for the suspension of the treaty in a message supported by European labor unions representing cockpit and cabin crew. Air France and KLM are two of the 11 airlines represented by the association.

The French State owns 28 percent of Air France-KLM, and the Dutch State is the second-largest shareholder with 9.1 percent. CMA CGM owns 8.8 percent, China Eastern Airlines owns 4.6 percent, Delta Air Lines owns 2.9 percent, SPAAK owns 0.9 percent, and the airline group’s employees own a 3 percent stake. The remaining 42.9 percent are held by other groups or are bearer shares.

The group owns three passenger airlines, Air France, KLM, and Transavia. It also owns the former Martinair Cargo brand, and a variety of other industry companies.