JetBlue CEO: Legacy Carriers “Favor Protectionism Over Competition”
Joe Cortez September 19, 2017
Executive supports Open Skies agreements in speech to Aero Club.
JetBlue chief executive Robin Hayes used direct language to express his disappointment with the American legacy carriers’ accusations of Open Skies agreement abuses. Skift reports the leader of the New York-based airline told the Aero Club of Washington the situation is more about the “concentration of power” among the nation’s major carriers during the September 2017 luncheon.
Instead of jeopardizing jobs and challenging the American infrastructure, Hayes argued that their opposition to the “Middle East Three” was less about alleged subsidies and more about protecting market share. The executive continued his defense of Open Skies agreements, citing them as an important part of international aviation infrastructure and opining that if they were removed, it would do much more economic harm in reduced tourism.
“Make no mistake, this battle is not about the U.S. airline industry against airlines from the Middle East. ” Hayes told the audience, as quoted in a transcript. “We believe it’s three mega-U.S. airlines who favor protectionism over competition.”
Open Skies concerns were not the only problem addressed in regards to the legacy carriers. The executive also accused the three and Southwest Airlines of making competition difficult at airports they control. As a result, Hayes said his airline’s expansion was an uphill battle of obtaining gates at airports.
The comments come as the U.S. Travel Association launched a new website, Voices for Open Skies. Their newest campaign features letters of support from American businesses for Open Skies agreements, calling for the defense of them as they stand.
In a response to Hayes’ speech, the Partnership for Open and Fair Skies, a consortium led by the legacy airlines, accused JetBlue of defending the Middle East carriers because of their relationship with them. In 2015, JetBlue won a transportation contract from United to transport government employees between Washington, D.C. and Dubai via an Emirates codeshare flight.
“Rather than address the market-skewing subsidies that threaten American jobs, the Gulf carriers and their allies are pushing for a separate review process entirely unrelated to Open Skies,” Jill Zukman, spokesperson for the Partnership, said in a statement. “Perhaps if JetBlue did not financially benefit from Emirates’ billions of dollars in illegal subsidies, it would acknowledge that fair trade requires that all parties abide by the rules of international trade agreements.”
[Photo: Shutterstock]
You’re Reading
What a bunch of disingenuous BS from a CEO trying to play politics. Of course the legacy carriers oppose Open Skies for financial reason (perhaps among others)... For the exact same reason B6 is in favor of it... both have a fiduciary responsibility to shareholders. Pretending that only one side has something to gain is absolutely absurd.
Understatement of the year!!
The US cartels want no interlopers on their protected turf.
Labelling the views of DL, AA and UA as a "protection racket" on this issue is shameful. Almost everyone in the industry believes that the Middle East airlines are heavily subsidized, in a way that no national airlines have ever been subsidized. It is completely reasonable for the major USA airlines who have to "compete" with these free billions, to oppose giving them more flights to the USA. On the otherhand, JetBlue does NOT compete with the ME3. Rather, it takes their money by flying connecting traffic to the ME3. So does that make JetBlue a Mideast whore? It does if you allege that the major US airlines are running a protection racket. Rather, I would submit, everyone is looking after their own interests, and the major US airlines have the better argument from a public policy standpoint (we should not be helping subsidized foreign companies take business from American companies).