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U.S. Airlines: Legacies’ War With Gulf Carriers WILL Hurt Flyers

Hawaiian and JetBlue among U.S. airlines rallying against the Open Skies debate, warning of major implications for flyers.

A group of four U.S. air carriers are making their voice heard in the Open Skies debate, calling the legacy carriers’ allegations narrow in focus. In a response to the government’s ongoing investigation, the group told secretaries of Commerce, State and Transportation that Open Skies agreements should be upheld.

In documents submitted to the secretaries, the newly formed U.S. Airlines For Open Skies — consisting of freight carriers Atlas Air Worldwide and FedEx, as well as passenger airlines Hawaiian Airlines and JetBlue Airways — warned that altering Open Skies agreements with the Gulf region could create major problems for consumers.

“We think it’s very important that the U.S. government not re-trench in its approach to its Open Skies policy,” FedEx senior vice president and general counsel Rush O’Keefe told Forbes. “Because [doing so] triggers all sorts of issues elsewhere in international aviation.”

While the letter is signed on behalf of the group, FedEx has previously rallied in the Open Skies debate. In a June blog post, O’Keefe asserted that changing the Open Skies agreements would put FedEx “at risk by the narrow interests of a small group of U.S. airlines.”

Additionally, the Wall Street Journal reports JetBlue has an additional business consideration with Emirates, as the UAE flag carrier has a fare special which includes both Alaska Airlines and JetBlue.

The U.S. legacy carriers — American Airlines, Delta Air Lines and United Airlines — continue to assert allegations of illegal subsidies against the Middle East Three — Emirates, Etihad Airways and Qatar Airways — and their respective countries.

Spokeswoman Jill Zuckman of the Partnership For Open and Fair Skies, which represents the legacy carriers and a number of industry groups, dismissed the new U.S. Airlines For Open Skies as “a meaningless coalition without a cause.

[Photo: iStock]

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3 Comments
J
jahason August 10, 2015

Chapter 11 bankrutcy is a form of subsidy. AlItalia received direct government subsidy and yet continues to fly to the US unhindered. Maybe the difference is that AlItalia is not any good and ME3 are.

S
starflyer August 7, 2015

And why would the US gov't consider subsidies to the Gulf airlines a bad or wrong thing? The US gov't supports subsidies for the sick (e.g. Obamacare) and the not so bright (e.g. student loans don't have to be repaid if you cannot afford). If other gov'ts choose to use their tax proceeds to subsidize their countries in a different manner, why is that a concern of the US gov't?

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ccyao August 7, 2015

They have a cause. And it's against the US legacies.