US-Gulf airline dispute - Europe Part 1: IAG opposes "subsidy" of US airlines, AF-KLM on 5th freedom

Of the thousands of comments the US government has received about the US-Gulf carrier debate, those from Air France-KLM, Lufthansa and International Consolidated Airlines Group stand out. They are the JV immunised partners of US carriers, and while this may suggest shared interests, the three European carriers show nuances - and even contradictions - compared with the positions of their respective US partners.

Part 1 of this report examines two aspects: Air France-KLM boldly believes the US-Gulf dispute should embrace Europe since US-Gulf traffic has the potential alternative of hubbing over Europe. Further, AF-KLM fears greater Gulf fifth freedom trans-Atlantic flying.

By AF-KLM's logic, IAG should have an even greater say: IAG is the single largest group operating between the US and Western Europe with a 16% capacity share, more than Lufthansa Group's 13%, AF-KLM's 9% or Delta's 14%. Yet IAG denounces the US carrier White Paper, saying: "To shield US airlines from their competitors would be to grant them the biggest subsidy of all."