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Emirates and Qatar Airways announce new US services - for commercial as well as strategic reasons

Analysis

In 2014, the Gulf network carriers - Emirates, Etihad and Qatar Airways - offered 2.7 million seats into the US with barely a peep of public antagonism. But now the US-Gulf carrier dispute is a loud topic. Is the sudden attention to Gulf airlines clouding judgment? In recent weeks Emirates and Qatar Airways have announced growth in the US: Emirates adding Orlando as a destination and increasing Boston and Seattle services while Qatar will open Atlanta, Boston and Los Angeles while growing New York JFK, with plans including A350 deployment.

The US axis is asking for a freeze on Gulf carrier capacity, making some suggest Gulf carriers are expanding "while they can" or are growing to antagonise US carriers. Atlanta may be a good market, but Qatar announcing service 14 months in advance will ruffle Delta feathers. "Maybe it's a coincidence at this time" Qatar is opening Atlanta, CEO Akbar Al Baker said on 13-May-2015. Looking at historical growth rates, the Gulf carriers are picking up pace. This may well be simply a feature of market opportunities evolving. The Gulf carriers have been under-represented in the US, which is now showing signs of economic strength while other long-haul markets are facing currency or bilateral constraints.

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