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Old Feb 17, 2015 | 8:15 am
  #594  
eternaltransit
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Originally Posted by iaflyer
Here is a video of Richard Anderson, the CEO of Delta on CNN, strongly asserting that the Middle Eastern airlines getting direct, cash subsidies from their governments.

http://www.cnn.com/videos/business/2...erson-intv.cnn
Thanks for linking the video iaflyer - interesting stuff and also interesting to see that Richard Quest (interviewer) is also going to get some of the ME3 airline CEOs on as well in the coming days.

Just had a listen to the interview (only 6:33) so I will summarise the key things that stood out for me:

around 00:30-01:00 - spent the last two years analysing their financials, Delta CEO claims "documented evidence that can't be refuted of tens of billions of dollars in direct subsidies"

01:00-01:15 - "the United Arab Emirates and Qatar Airways are not airlines, they are governments" [sic]

01:30 - not an argument against Open Skies

02:15 - "level the playing field to set off around 40 billion in subsidies much of which is direct subsides"

02:40 - "the middle east carriers, the UAE and Qatar cannot deny huge government subsidies, and those government subsidies are the issue and they are violations of the WTO definition of subsidy and a violation of US Open Skies agreements, so let's not be distracted by the huffing arguments the UAE makes"

03:30 - Quest: "you and your report say one thing then you go to the gulf three and they deny specifically in words of one or other syllables have not [..]" Anderson: "that is false, and we have the evidence and we have shared that evidence with their actual certified financial statements that we found in other territories around the world that are certified by the big accounting firms that you would recognise"

04:35 - "it's against fair trade policies ... and in the end the US is a big loser because it's all about jobs"

05:00 - Quest: "the allegation that you restructured under Chapter 11, civil defence fleet, [..] the argument is that you, in your own ways have had your hand in the bailout trough"
Anderson: "that is categorically false, and it's a great irony to have the UAE, from the Arabian Peninsula, talk about that, given the fact that our industry was really shocked by the terrorism of 9/11 that came from terrorists from the Arabian Peninsula, that caused us to go through a massive restructuring and in the United States our restructuring process is transparent and there is no government subsidy, and in fact there were billions of dollars of equity and unsecured debt that were wiped out through that process"

06:00 - "if the United States cannot correct a blatant case of huge direct cash subsidies, then it's going to be very difficult to proceed with the TPA agreement and the Pacific Trade agreement and the Fast Track authority"
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