In the midst of the ongoing Open Skies battle between the US carriers (American, Delta and, United) and the Gulf carriers (Emirates, Etihad, and Qatar), Emirates has gone on the defence by publishing a 16-page document detailing the airline’s reaction to the accusations faced.
Emirates A380
In issue 21 of The International and Government Affairs Journal of Emirates, the Gulf carrier reiterates that it has never received any form of subsidy from the UAE government. After all, having operated flights to the US since 2004, Emirates states that it “fails to understand how [the carrier] can be competing unfairly in 2015”.
Myth vs Fact – Emirates responds to accusations
Emirates was responding to the allegations made on a white paper published by the three biggest US airlines, in which it has been alluded that the three state-owned Gulf carriers have received over US$42 billion in “quantifiable” subsidiaries since 2004, along with other benefits that include “exemption of corporate taxes and breaks on local airport infrastructure and services”.
Competition is strong between Gulf and US carriers
In particular, the US carriers have been lobbying for the government to modify or annul the existing Open Skies agreement that allows airlines from the Gulf States and US to operate flights in-between, on condition that they do not receive any government subsidies.
As previously reported by Business Traveller Asia-Pacific (see here), Delta’s chief legal officer Ben Hirst was quoted as saying: “We fully expect the government to act on the evidence. From the US airlines' standpoint, we're competing with [foreign] governments, not private businesses”.
The three big US carriers have already received much support from several union parties (see here), including the Association of Flight Attendants, the Association of Professional Flight Attendants (APFA), the Communications Workers of America, and the International Brotherhood of Teamsters – all of whom have accused the Gulf carriers of having “abhorrent labour standard”.
Emirates route map – correct as of April 2015
Emirates believes that the real issue here is that the US carriers, along with their joint venture partners wish to further limit the international air transport choices available for American consumers, airports, local and regional economies.
“Despite what some carriers may think, air passengers are not properties to airlines. We don’t “take” or “steal customers”. The three US carriers’ obsession with market share makes all the apparent what they are really after: not open markets or Open Skies, but outright government-directed market allocation,” detailed a statement by Emirates in the journal.
Emirates reaction to the "Partnership for Open and Fair Skies" campaign by APFA
For more information, visit emirates.com
Clement Huang
