U.S. Legacies Welcome Fresh Reinforcements as EU Joins Open Skies Debate
Joe Cortez March 19, 2015
The EU is putting pressure on the “Gulf Three” as it joins the Open Skies debate, and the U.S. legacy carriers’ coalition for a “level playing field” is praising the move.
The EU will join the Open Skies debate, as the transport commissioner is seeking a mandate to reconsider bilateral agreements with the “Gulf Three” — Emirates, Etihad Airways and Qatar Airways. EurActiv.com reports commissioner Violeta Bulc will ask to allow the EU to revisit their agreements with the Arabian carriers following a request supported by six member nations.
The request comes after the contents of the U.S. legacy carriers’ 55-page report was released to the public. The report alleges the Gulf Three received over $42 billion in supposed illegal subsidies in order to grow their airlines.
If the mandate moves forward, the EU would be authorized to revisit the bilateral agreements. The result could also have ripple effects for other countries that operate intercontinental flights as well, such as China and Turkey.
“We have a good internal aviation market in the EU, but we are losing the share on intercontinental flights,” said Anrijs Matiss, transportation minister for Latvia. “We need to address how to be competitive in other markets and social dumping is part of it.”
In a press release, The Partnership for Open and Fair Skies — an organization made up of the U.S. legacies, the Air Line Pilots Association, the Allied Pilots Association and a number of other labor organizations with the shared goal of restoring “a level playing field” — praised the move by their EU counterparts. “European countries understand all too well that the subsidies the Gulf carriers receive are distorting the marketplace and costing jobs,” said the coalition’s spokeswoman, Jill Zuckman.
Firing back against the allegations, CEOs from both Emirates and Etihad met with officials in Washington for what they describe as “constructive” meetings. Both executives claim their respective airlines never received subsidies and the U.S. legacy carriers are more concerned with protecting trans-Atlantic air routes.
“We make no apologies for offering new competitive choice for travelers,” Etihad CEO James Hogan stated during a press conference, reports The New York Times. “Open skies should be about customer choice.”
Qatar’s CEO, Akbar al-Baker, also denounced the legacies’ allegations this week during a conference in Doha, Qatar, making a quick jab at Delta’s CEO in the process and accusing the airline of flying “crap” planes.
[Photo: iStock]
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If I recall 40 years ago the EU Airlines were then fighting the Asian Airlines, I even recall an incident where The West German Police raided the Frankfurt office of Singapore Airlines. Of course market forces prevailed and many of the Significant Asian and Oceanic Airlines failed to grow at the same speed of the EU Airlines, e.g. AI/TG/MH/JL/GA/QF Here's Qantas International Route Network in 1973 http://timetablist.blogspot.com/2011/04/qantas-worldwide-network-march-1973.html Even more remarkable what is now Biggest Qantas Northern Hemisphere Destination LAX was not even served. Of course many were just re-fueling stops but AMS/VIE/ATH/DEL/YVR/AA were significant cities. Most of these were abandoned long before the New Gulf Airlines even existed. At the same time the EU Carriers also stopped serving cities that the New Arabian Airlines are proud to serve. Of course Turkey is not yet in the EU but Turkish have done a remarkable job of emulating the Hub and Spoke System showing that if you offer Good and Plentiful Service and the Right Prices you can succeed. If you wanted to fly Premium Class from Manchester UK say would you really want to fly Cattle Class on your first flight. Sorry the leading EU Airlines only have themselves and their outdated Airports to blame.