Official probe into Gulf airline subsidies

Tuesday, 14 Apr, 2015 0

The US administration will conduct a formal review of the state subsidy row between a trio of US and Gulf carriers, and has called for views and feedback from relevant stakeholders.

The White House said the State, Commerce and Transportation Departments will collect comments until the end of May.

A joint statement by the departments said: "The US government takes seriously the concerns raised in the report and is interested in receiving insights and feedback from stakeholders before any decisions are made regarding what action, if any, should be taken."

US carriers American Airlines, Delta Air Lines and United Airlines want the Obama administration to investigate concerns over subsidies paid to Emirates, Etihad Airways and Qatar Airways.

They want the government to modify or even scrap the ‘open skies’ trade agreements.

US airlines claim the Gulf carriers have unfairly benefited from $42 billion in state subsidies.

"We are pleased the US government is taking the next step to further examine the issue of massive subsidies that Qatar Airways, Etihad Airways and Emirates receive from their governments," the Partnership for Open & Fair Skies said.

"This process is an opportunity for greater transparency and we urge the Gulf carriers to adhere to the same standards of financial disclosure and accountability as the US carriers."



 

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Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.



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