Loading

US airline attacks on Gulf carriers: more rhetoric than consistency - but it makes for good politics

Analysis

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.

Allegations about receiving subsidies are muddled. 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.

Mr Anderson said he supports policies "allowing US airlines to compete in international markets free of government distortions". But his JV partner Alitalia in Aug-2014 benefitted from its government mobilising shareholders to inject capital or restructure existing debt amounting to EUR1.2 billion as part of, ironically, Etihad taking a minority interest in Alitalia.

Read More

This CAPA Analysis Report is 2,415 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More