American CEO: Middle East Three Are ‘Biggest Threat to Commercial Aviation’
Joe Cortez April 07, 2016
Executive calls out Arabian carriers in the latest round of the Open Skies debate.
American Airlines’ chief executive Doug Parker is breaking his silence over Open Skies, calling the Middle East Three “the biggest threat I’ve ever seen to commercial aviation in the United States.” The Dallas Morning News reports the comments were made during a question and answer session at the Aviation Week MRO Americas conference in Dallas on Wednesday, April 6.
In his speech, Parker reiterated accusations that the three major Arabian carriers – Emirates, Etihad Airways, and Qatar Airways – received over $42 billion in subsidies from their respective governments. As a result, the long-time airline executive claims America’s legacy carriers cannot fairly compete in the global marketplaces.
“I’m sure that sounds like hyperbole, but it’s not,” Parker claimed, according to the Dallas Morning News. “What’s happening is those two countries are subsidizing those three airlines to a point where they don’t need to be profitable.”
During his podium time, Parker noted several recent flights added by the Arabian carriers to the United States, claiming it was impossible for them to earn a profit. The leader of American highlighted a flight operated by Emirates from John F. Kennedy International Airport (JFK) to Milan as one that could be allegedly subsidized.
“I’ve been in this business long enough and know what the numbers are, and it can’t be done,” Parker told the audience. “They add routes that cannot be profitable, but they don’t care because they’re subsidized.”
Although Parker fielded the questions about the investigation in to the Open Skies agreements, the head also spent time discussing the employee relations changes being made by his airline. The speech comes after pilots accused Parker and his leadership team of being out of touch in an open letter.
The comments mark the second time an executive has spoken up about Open Skies in 2016. Earlier in the year, Emirates’ CEO Tim Clark noted the strengthening dollar and Open Skies as challenges to his airline in the year ahead.
[Photo: Bloomberg Finance]
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It's been interesting Dickie retires from DL and Dougie picks up the mantel ! Wondering why the new administration at DL has not spoken out or have the "big three" and thats a stretch decided that Parker will be their spokesperson ? I for one am glad the romance with AS is fading a bit. Hate to see Parker screw it up like Anderson did.
Who cares about the ME3 except for our own oligopolyhere in the US? Why doesn´t Doug get his own house in order first. Would anybody choose AA over any of the ME3 on a 14 hour flight?
On Emirates, The Shower" is in the A380 First Class Cabin On US Carriers "The Shower" is in The Boardroom.
Has Dougie taken over from Bubba Anderson as the Fear Monger In Chief for the US Cartels? Whining is unseemly Mr. Parker.
Really, you are throwing Oneworld's own Qatar under the bus? After the recent AAdantage devaluation I at least expected any decent mileage redemption opportunities to come back but doesn't seem to be happening. No reason for loyalty at all anymore. I thought at least with chug-a-lug Doug running things that the adult beverage selections would get better. Maybe the flight attendants keep a private stash for him.