With Qatar having agreed to release detailed information about state-owned Qatar Airways back in January, the UAE is to follow suit in an attempt to finally resolve the dispute between the U.S. and both Etihad and Emirates Airways. The matter relates to claims made by the U.S. that these Gulf carriers have been in receipt of state subsidies which have afforded them an unfair advantage over American airlines.
All three Gulf carriers have been challenged under the ‘Open Skies’ agreement signed in 1992 between the Gulf states and the U.S. which was designed to eliminate government involvement in airline decision-making about routes, capacity and pricing in international markets.
Starting in 2015, Delta Air Lines Inc, American Airlines Group Inc. and United Airlines urged the U.S. government to challenge the conduct of the three major Gulf carriers, contending that they had been being unfairly aided by their governments to the tune of some US$50 billion in subsidies over the previous ten-year period.
Qatar, Etihad Airways and Emirates who, combined, operate roughly 200 flights each week to 12 U.S. cities, have all denied these accusations.
“We have reached a mutually agreeable conclusion to this issue that has gone on for several years now,” a senior State Department official said. “For us this was levelling the playing field for our U.S. stakeholders and there’s the added benefit here of increased financial transparency.”
“The UAE is very pleased that our understanding with the US preserves all of the benefits of Open Skies for travellers, airlines, communities and aerospace companies in both countries and around the world,” Yousef Al Otaiba, the ambassador to the United States, said in a statement. “All the terms and provisions of the Air Transport Agreement including Fifth Freedom rights remain fully in place, with UAE and US airlines free to continue to add and adjust routes and services.”
