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OPEN SKIES ROW ESCALATES

US airlines allege that Emirates, Etihad Airways
and Qatar Airways have received more than $40 billion
in state subsidies. Image: Reuters

UAE 'happy to talk' with US about airline subsidies

DUBAI, March 12, 2015

The UAE is "happy to talk" with the United States about alleged state subsidies received by Gulf airlines, said an aviation official, adding that no government action currently is necessary, according to a media report.

The remarks follow an escalating campaign by US airlines and unions to persuade the United States to initiate talks with the United Arab Emirates over their "Open Skies" agreement, which authorizes commercial flying between the countries.

"We are happy to talk... But right now I don't think the governments should do anything. I think the governments should really commit to their Open Sky policies," said Laila Ali Bin Hareb Al Muhairi, assistant director-general at the General Civil Aviation Authority of the UAE, according to Gulf News.

Reuters could not immediately verify the media report.

US airlines and unions have alleged that Emirates, Etihad Airways and Qatar Airways have received more than $40 billion in state subsidies, contrary to the spirit of Open Skies, which has allowed them to drive down fares and push their US competitors out of key markets.

Al Muhairi said the subsidy claims were "not based on any substantial information" and added that the US had yet to raise these issues with the UAE, according to Gulf News. The Gulf airlines have denied the allegations and say US airlines are losing market share because of their inferior service.

A spokesman for the Partnership for Open & Fair Skies, a lobby group of US airlines and unions, said in a release Wednesday, "We look forward to those consultations taking place and hope that the government of Qatar will also be willing to engage the US government in similar talks." – Reuters




Tags: UAE | US | Open Skies | Gulf airlines |

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