President Trump praises jobs created by SIA's Boeing order, but new legislation to cause job losses

New draft US legislation would plumb the depths of discriminatory aviation practices. The Big 3 US airlines (American, Delta, and United) have - so far - fruitlessly campaigned that the Gulf superconnector airlines are artificially big, and that "fair competition" restrictions should be invoked so that those airlines must reduce their flights.

A senator from Delta's home state of Georgia is now proposing tax provisions that would subject the three Gulf superconnector airlines, as well as a handful of other airlines, to US taxes. The provision is based on US airlines not flying to foreign countries whose home airlines do fly to the US. This is overtly discriminatory and cuts across the long-running US aviation policy of liberalisation that has allowed US airlines to spread their wings internationally. And not only would it attack the Gulf carriers, but at least another 20 international airlines would be affected.

American Airlines ended its codeshares with Etihad Airways and Qatar Airways to escalate its stance. Internally at American the decision was controversial on a commercial basis, and has now taken an aeropolitical turn: Etihad will suspend its Dallas flight from Mar-2018, on the basis that the loss of American's codeshare will make the flight unviable.

US airlines will never replace Gulf airline flights on a one-for-one basis. One week after US President Trump praised Singapore Airlines for placing a Boeing order that will generate jobs in the US, Etihad has declared that American Airlines is, effectively, single-handedly responsible for a decrease in economic and job contribution in the US.

Whatever the facts, this is a new political environment often guided by emotion and appearance rather than substance and the public interest.

This CAPA Premium Analysis article is 2,749 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com