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US-Gulf airline conflict: peace with (almost) honour

Analysis

Qatar Airways' pledge to freeze any plans for operating fifth freedom flights, followed by a similar (but different in important aspects) deal with the UAE, has resulted in the US Big 3 claiming victory in their years-long subsidy campaign while American, Delta and United's opponents in the debate are left scratching their heads over what exactly is being accomplished.

American, Delta and United have argued that their grievances were never about the elimination of fifth freedom flying on a broad scale. It was "subsidised" fifth freedom operations and the potential for expansion that raised their ire. A later agreement with the UAE should allay the concerns of FedEx that its crucial global fifth freedom operations are not in jeopardy.

Emirates obviously has more skin in the game since it actually operates fifth freedom flights. But given that those operations represent a microscopic proportion of the airline's operations, perhaps agreeing not to pursue further fifth freedom flying is a small price to pay in order to end the years-long subsidy controversy.

However, now that another agreement has been reached with the UAE, is it really the end of the debate or merely a temporary truce?

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