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US DoT rubber-stamps arguments from A4A and Delta in denying Air Serbia-Etihad codeshare

Analysis

The US government has formally stepped in and arguably set a dangerous precedent concerning the new business models being adopted by some of the Gulf airlines in rejecting a request by Air Serbia (formerly JAT) and Etihad to codeshare on service to the US.

The troika of airline lobbying group Airlines For America (A4A), Delta Air Lines and the Air Line Pilots Association formally opposed the request on what is now familiar grounds - arguing the Belgrade-Abu Dhabi-US routings are unviable for the consumer, Air Serbia's new ownership (Etihad formally took a 49% stake in Jan-2014) is suspect, and the absence of a bilateral agreement with Serbia.

While debate will continue on the merits of the arguments offered by both sides, perhaps another underlying element is Etihad's and Air Serbia's plans to bolster the hub at Belgrade. The build-up in Belgrade adds a new competitive dynamic in Europe, one unsavoury to established network carriers within Europe and US airlines serving the continent.

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