The United States' State Department plans to meet with representatives from Qatar and the United Arab Emirates next month over complaints of unfair airline subsidies brought by American competitors.
The informal talks, schedule for July 25, appear to signal that the State Department does not plan to freeze flights or formally open discussions on the Open Skies Agreement with the two Gulf nations, as competitors Delta Air Lines, American Airlines and United Airlines had hoped, according to Politico . Instead, the State Department appears to be taking the path of simple dialogue between both sides.
Qatar Airways, Etihad Airways and Emirates have been caught in a longstanding row with their U.S. competitors as the the Gulf carriers have continued to expand into the American market. Last year, the U.S. carriers accused the Gulf airlines of receiving some $40 billion in unfair subsidies from their governments, claiming that the airlines had violated the international Open Skies Agreement.
However, Etihad quickly responded by pointing out that American carriers had received more than $70 billion in benefits from the U.S. government. Much of the benefits came through bankruptcy protections, which were detailed in a report compiled by the London-based RiskAdvisory investigation group and commissioned by Etihad. Nonetheless, Etihad wasn't accusing its competitors of unfair competition but instead was making a point.
"We do not question the legitimacy of benefits provided to U.S. carriers by the U.S. government and the bankruptcy courts," Etihad General Counsel Jim Callaghan said in a press release announcing the results. "We simply wish to highlight the fact that US carriers have been benefitting and continue to benefit from a highly favorable legal regime, such as bankruptcy protection and pension guarantees, exemptions from certain taxes, and various other benefits."
Although the U.S. government opened an investigation into the dispute last April, it has been dragging its feet on the issue. Meanwhile, the Gulf carriers have launched numerous additional direct flights to the United States, further angering their rivals.
Most recently, tensions have risen between Delta and Qatar Airways, as Qatar's national carrier launched direct flights between Doha and Atlanta, Delta's main hub in the U.S.
Gulf carriers consistently rank among the world's top airlines, with Qatar Airways coming in at No. 1 last year, according to the Sky Trax World Airline Awards . Emirates and Etihad came in at No. 5 and No. 6 respectively, while the closest U.S. competitor was Delta at No. 45.