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US airlines take aim at the Gulf carriers when perhaps they would be better woo-ing them

Analysis

Some prominent airlines in Europe and elsewhere take explicit aim at the Gulf carriers "stealing" traffic via sixth freedom flows, which they argue "belongs" to them. Yet, though this transfer traffic comprises about 80% of the Gulf airlines' US flights, the US airlines in their still-protective rhetoric against Gulf carriers do not target this sixth freedom element. The source markets for Gulf carriers' US flights are highly fragmented, and even the largest source markets - from Hyderabad to Dhaka to Kabul - are not served by US carriers and seldom have high frequency, if any, from their international partners. "Delta has never been a big player in that market," Delta chief revenue officer Glen Hauenstein has acknowledged.

Instead, some vociferous US airlines are more strongly opposed to growing fifth freedom services across the Atlantic. But there is an irony: Delta, the most outspoken, has its own fifth freedom network; it is not insignificant, at about half the size of Emirates'. Emirates' Milan MXP-New York JFK service sparked concerns, but American and Delta quietly acknowledge their own international stagnation paved the way for Emirates' entry. German researchers believe Emirates will be able to open only a "handful" of fifth freedom trans-Atlantic routes, and these will depend on legal changes since many UAE-Europe air service agreements (besides Germany) do not provide for fifth freedom trans-Atlantic flights.

So what explanation is there for some US airlines reacting so strongly against what is at worst a minor competitive threat that can be avoided through proactive commercial decisions - and partnerships?

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