Three top US airlines groups called on the US government and urged changes to the bilateral commercial aviation agreements between the United States of America and Qatar and the United Arab Emirates.
Accodring to the groups $42 billion was given to UAE and Qatar based airlines, including Qatar Airways, Etihad Airways, and Emirates to push US carriers out of this lucrative market, and make competing impossible.
The US carriers together with workers’ groups issued a 55 page report detailing how “unfair” subsidies given to Gulf rivals Qatar Airways, Etihad Airways and Emirates have allowed them to wrest market share from the US industry.
Airlines from the United States are escalating their rhetoric against Emirates, Etihad Airways and Qatar Airways, even suggesting the near unprecedented action of rescinding open skies agreements, which the US has with the UAE and Qatar. The refrain is loud and echoes much of the European airline resistance – but US airlines cannot seem to agree on their target.
United CEO Jeff Smisek at one time said Gulf airlines are not subsidised, but then said they are “heavily subsidised”. American Airlines CEO Doug Parker said they are “perhaps” subsidised. Delta CEO Richard Anderson bemoans the role of state-owned airlines despite having many national carriers (Saudia, China Eastern etc.) as partners in SkyTeam.
“The multi-billion dollar subsidies… have allowed Qatar Airways, Etihad Airways and Emirates to rapidly expand their fleets and international routes, distorting the commercial marketplace to the severe detriment of US employment, the US economy and the US airline industry,” the US group said.
American Airlines, Delta Airlines and United Airlines along with US pilot and airline labor groups said the three Gulf fliers have benefitted unfairly from huge interest-free loans, subsidized airport charges, government protection on fuel losses, and below-market labor costs that are considered unfair subsidies under the World Trade Organization.
The report said that, with the backing of state support, the Gulf airlines are targeting more international traffic to the United States on the back of the US “Open Skies” aviation agreements with Qatar and UAE.
It noted their huge share of orders for widebody aircraft, representing about one-quarter of the entire global fleet of widebody aircraft.
“Because the Gulf carriers are adding this new capacity at rates that substantially exceed global GDP growth — which drives growth in demand for air transport services — the only way to accomplish this feat is to continue taking passengers from other countries’ carriers,” they said.
They called on the US government to open new talks over the air agreements to address what they said are violations of those pacts, and pressed for changes.
“The Open Skies agreements conferred enormous benefits on Qatar and the UAE by opening the most lucrative market in the world to their airlines,” the group accused.
If Qatar and UAE refuse to address the problems, they recommended, the US should move to terminate the agreements and negotiate new deals based on “principles of comity and reciprocity,” the US group said.
http://www.eturbonews.com/56263/emirates-qatar-airlines-and-etihad-airways-violation-us-agreemen
