US Federal Aviation Administration has proposed an increase in fees charged for overflying the country by 14% p/a for four years from 2012 (Seattle pi, 08-Oct-2010). The FAA said the methodology used for developing overflight fees established in 2001 didn't include overhead costs, and it is spreading the 69% increase required to recover its true costs over four years, to USD56.86 per 100 nautical miles by 01-Oct-2014, compared to approximately USD35.69 per 100 nautical miles currently. IATA said the increase would cost airlines another USD40 million to USD50 million.
FAA proposes increase in overflight charges
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Emirates has multiple reasons for cutting back on US capacity
As the most conspicuous and largest, Emirates Airline often takes on its shoulders the increasingly difficult task of defending Gulf aviation. Emirates often single handedly represents the Gulf and "Middle East Big 3", in much the same way as Dubai carries regional geopolitics.
Just as there are significant differences between the Big 3 US airlines who have strenuously opposed the Gulf carriers in the US market, so Emirates is fundamentally different from its peers: it is longer established, has a larger home market and has had a more commercial mandate from the beginning.
Yet Emirates must compete in a market where many others would like a piece of that market. Just as Dubai Inc modelled itself in many ways on Singapore Inc, there are many who would follow the same trail. This does not lead to steady market conditions.
Certainly the policies of US President Trump have hurt aviation and tourism. But Emirates' announcement of a 19% reduction in services to the United States is less about US policies and more about the nature of the market forces that started before Trump was even a serious Presidential contender.