DUBAI, Oct 10 The United Arab Emirates will close a military camp near Dubai used by Canadian troops to support operations in Afghanistan, a UAE source said on Sunday, in an escalation of a dispute over landing rights.

The decision comes after the UAE failed to convince Canadian authorities to allow its two major airlines to increase flights to Canada.

“Canada kept giving excuses and playing for time,” said the source, speaking on condition of anonymity.

Dubai carrier Emirates has been lobbying the Canadian government to boost its thrice-weekly direct flights to Toronto and more Canadian destinations. Etihad Airways, based in Abu Dhabi, also wants to increase flights.

Canadian carriers worry the UAE airlines would steal away connecting passengers that make their routes profitable and have lobbied the government to resist.

The UAE source said the agreement allowing Canada to use the airbase had expired in June. It was extended to September at Canada's request.

“In the spirit of goodwill, the UAE went ahead and gave them the extension. The MOU has now expired and that is that.” Other coalition forces in Afghanistan, including Australia, also use the airbase.

“Australia (bound) flights for example have gone up from 30 flights a week just a few years back to 100 flights a week today,” the source said.

“Obviously, you don't expect the UAE to extend the same facilities to Canada as it does to Australia,” he added.

Earlier on Sunday, state news agency WAM quoted the UAE's ambassador to Canada Mohammed Abdullah Al-Ghafli as saying his government was disappointed by the failure of five-year talks on the airline issue.—Reuters