Monday, May 11, 2015
Dubai: The ongoing spat between UAE and US carriers over government subsidies will not develop into a diplomatic issue for Abu Dhabi and Washington DC, UAE Minister of Economy, Sultan Al Mansouri, has said.
The US’ three largest airlines, Delta, United and American, are irked by the rapid growth of the UAE’s largest airlines, Emirates and Etihad Airways, as well as Doha-based Qatar Airways. The US carriers, alleging that the growth of the three Gulf airlines was only made possible with $42 billion (Dh154 billion) in unfair state subsidies, want their government to rethink open skies agreements with the UAE and Qatar.
The spat has so far mainly played out in the media with executives from the six airlines locked in a tit-for-tat, but asked on Monday if it could become a government-to-government issue, Al Mansouri said, “No, not at all.”
“We have a really a great relationship between the two [government’s], he told reporters at the Dubai International Exhibition Centre.
The increasing expansion of the three airlines into the US continues to frustrate their American counterparts who want their government to freeze additional flights. Since the US allegations were aired, Emirates has announced its 10th US destination to Orlando, Florida and Etihad Airways has announced when it will start flying the world’s largest passenger jet, the Airbus A380, to New York.
“The harm from these actions is real and immediate and it is why we need the US government to quickly freeze additional flights by the Gulf carriers and to request consultations with the United Arab Emirates and Qatar,” stated Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies, the body representing the three US’ airlines claims, last week following the announcement by Qatar Airways of new US routes.
Al Mansouri, who is also the Chairman of the General Civil Aviation Authority, warned that “some kind of freeze on additional flights” would immediately impact passengers from across the world because Emirates and Etihad “are global carriers.”
Emirates has made clear that it plans to continue to expand into the US market despite the allegations and lobbying efforts by its US counterparts. Last week, Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates and airline and Group, said the US carriers “will not stop us from what we’re doing.”
The head of the International Civil Aviation Organisation (ICAO), a specialised aviation body of the United Nations, has also weighed in on the subsidy spat, telling reporters on Monday that “it should be a technical debate rather than a political one”
Raymond Benjamin, ICAO Secretary General, said US airlines could not claim that it is unfair if their Middle East competitors do not have unions.
“You cannot force an airline to have a union in other countries,” he said.
By Alexander Cornwell Staff Reporter
Gulf News 2015. All rights reserved.
