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Mon 9 Feb 2015 09:47 AM

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US airlines push gov't to modify or terminate air treaties with Gulf nations

CEOs of American Airlines, United Continental & Delta Air Lines claim state aid given to Emirates, Etihad and Qatar Airways gives them an unfair advantage

US airlines push gov't to modify or terminate air treaties with Gulf nations

Chief executives of the three largest US airlines said they want the US government to modify or terminate air treaties with two Gulf nations, the Wall Street Journal reported.

In a joint interview, the CEOs of American Airlines Group Inc, United Continental Holdings Inc and Delta Air Lines Inc said subsidies and government policies for three carriers from the region were distorting global air transportation.

The executives said these airlines receive subsidies under open-skies treaties that have helped them fly and set rates freely in the United States, the Journal reported.

According to the US Department of State, open-skies treaties provide "maximum operational flexibility for airline alliances." The executives also said that Emirates Airline, Etihad Airways and Qatar Airways have received $42.3 billion in subsidies since 2004, the Journal reported.

Emirates President Tim Clark said the airline had never received financial subsidies or bail-outs.

Clark said the company had received a start-up capital of $10 million in 1985 and infrastructure investment of $88 million for two Boeing 727 aircraft and a training building.

"This investment has been more than repaid by dividend payments to the government of Dubai," Emirates President Tim Clark said in an email to Reuters.

The three US airlines cited in the report as well as Etihad and Qatar Airways were not immediately available for comment.

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Bharat Jashanmal 5 years ago

Just more of the same sour grapes!

Oswald Saldanha 5 years ago

North American and European carriers, should do a comparative wage study of all categories of employees, employee union control over line management and overall product and management of daily operations.
The result of this study, will render the North American and European carriers far inferior to the big Three ( QR, EK, EY )of the Middle East.
The fact of the matter is that, western airlines are beholden to their unions, the standard of their daily operation is dictated to management by it's Union members.
Their airport operation, is in a de facto way run and dictated by their unions, a pill, which is too bitter to swallow for them.
Finally the Big Three have a far superior, action oriented management team, driven to succeed, at every instant.

Jake 5 years ago

So you are suggesting, that western airlines should adopt the same hire and fire mentality we see among those "Big 3"? It's easy when you dont have to care for the long term benefits of your employees and have to act with a social responsibility. Just ask how happy the staff of QR is, there are numerous articles about it. You are comparing apples with oranges, level the playing field, then we'll talk.

one of the joe's 5 years ago

Oswald, your post sounds as if you consider unions to be some sort of overarching evil force.

The origin of labor unions dates back to the eighteenth century and the industrial revolution in Europe. During this time there was a huge surge of new workers into the workplace that needed representation.

May be you got your logic the wrong way around? May be unions actually serve a justified purpose and should continue to do so? And it may be the GCC countries where the introduction of unions should be brought forward? That would actually lead towards more social justice and improved fairness among all economic stakeholders in the Gulf societies.
And maybe EK, EY and QR would then become preferred employers for the local workforce as well ?
Supposedly the private sector does not cater for the needs of local population. That could all change with the introduction of proper employee representation through unions.

procan 5 years ago

Could this be the right time to Sweeten North America and EU sour grapes by reducing access to Western Markets clearly the relationship is changing with less need for Oil/Gas from the Mid East . With respect.