U.S. Rejects Calls From Big Three, Won’t Freeze Open Skies
by Daniel McCarthy /Photo: Oliver Holzbauer
Gulf carriers Emirates, Ethiad and Qatar will be able to continue operations uninterrupted while the U.S. State Department will reach out to the governments of Qatar and the United Arab Emirates to informally discuss state subsidies later this summer.
In a statement on Monday, the three big U.S. carriers—in a lobbying group called Partnership for Open and Fair Skies—didn’t call the news a loss. Rather, the group said it appreciates “how seriously the U.S. government has taken the issue of massive subsidization of the Gulf carriers” and that “discussions between our governments are an important step forward.”
U.S. Travel Association President and CEO Roger Dow called the decision an “unequivocal victory for the U.S. economy, U.S. workers and travelers all over the world.”
“The Big 3 airlines and their union allies asked for two things that would have dramatically harmed fliers and the economy—one, enter formal consultations to renegotiate specific Open Skies agreements; and two, freeze air service from those countries—and they were thankfully granted neither,” he wrote in a statement.
The agreements, which the U.S. started to sign with countries around the world in 1979, were designed to eliminate government interference in commercial airline routes, capacity and pricing.
Open Skies allows airlines to cross land borders and territorial waters without prior consent from the individual nations over which they fly. Today, the United States has agreements with more than 100 countries and more than 70% of international flights from the U.S. fly to countries under Open Skies.
But because Gulf carriers—most notably Emirates, Qatar and Etihad airlines—are receiving $42 billion in state subsidies, Delta, American and United have all?petitioned?the U.S. government to freeze routes to the U.A.E. and Qatar until they correct alleged violations of the agreements.
Air Canada also took a stand against the policy, saying it would oppose any more flights by Emirates Airlines and Etihad Airways to Toronto in November.
Gulf carriers responded that those airlines were mostly upset about losing their share in the market.
“We are concerned to see the Big Three seek to change the rules of the game as soon as they see U.S. consumers respond well to the services offered by a competitor,” said Qatar Airways CEO Akbar Al Baker last year.