US and UAE reach settlement to end Open Skies feud
The United Arab Emirates and the US have seemingly resolved their global airline spat.
After months of negotiations officials from the two nations have reportedly signed an agreement which will be formally announced today, May 14.
The UAE has pledged to provide more financial transparency of its two state-backed carriers, Emirates and Etihad Airways.
The UAE government will make public annual financial reports for Emirates and Etihad under international accounting standards.
Echoing a pledge from an earlier agreement with Qatar, the UAE carriers said they have no plans for any more ‘fifth freedom’ flights into the US.
The global airline spat began three years ago with American Airlines, Delta Air Lines and United Continental crying foul over ‘unfair’ state subsidies to Qatar Airways, Emirates and Etihad.
US Secretary of State Mike Pompeo will formally announce the agreement on May 14, Bloomberg reports.
"This is what we have said all along – its government subsidies harm competition," said Scott Reed, for the Partnership for Open and Fair Skies, which has been the mouthpiece for American, Delta and United specifically in this matter.
Emirates has welcomed the conclusion to talks and finally an end to the bickering.
"The record of discussion and related side letter fully preserves Open Skies as per the existing air transport agreement between the US and the UAE, guaranteeing complete commercial flexibility that benefits consumers, communities, and the economies of both countries," the airline said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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