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Wed 15 Apr 2015 08:16 PM

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Delta chief eyes new price-lowering rules in Gulf Open Skies pacts

US airline boss hints at potential changes to US Open Skies pacts with Qatar and the UAE amid subsidies dispute

Delta chief eyes new price-lowering rules in Gulf Open Skies pacts

Potential changes to US Open Skies pacts with Qatar and the United Arab Emirates could involve new rules on price-lowering and capacity-dumping, Delta Air Lines CEO Richard Anderson said on Wednesday.

The remarks during a conference call on the company's earnings represented one of the clearest statements yet by US airlines on what they hope talks between the US and the Gulf states would achieve if they take place.

Delta and other US airlines have charged their Gulf competitors with receiving more than $40 billion in subsidies from their home governments. This, they say, has allowed them to lower prices and begin pushing US airlines out of key markets.

Emirates, Etihad Airways and Qatar Airways have denied the allegations, saying US carriers have lost market share because of inferior service.

"We're in the process of answering questions (from the US government)," Anderson said, "and the end result needs to be like the Chinese steel case or agricultural cases that the US frequently brings (to the World Trade Organization), where you come up with remedies that will address a subsidy."

The Obama administration on Friday solicited comments on the debate and said it expected to begin reviewing submissions by the end of May.

The government has not indicated whether it would discuss the subsidy claims with Qatar and the UAE. 

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procan 4 years ago

US public opinion will force Obama to action. If Canada can do it , well you see where its going.