U.A.E. Airlines Dispute Allegations Made by U.S. Legacy Carriers; Also find $71.48bn in Government Benefits to U.S. Carriers Since 2000

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The U.S.-U.A.E. Business Council continues to advocate for the broader U.S.-U.A.E. relationship in the context of the current debate over Open Skies policies.

Along those lines, I wanted to share with Business Council members some recent communications, commentaries and analysis that provide additional background and support Open Skies and liberalized trade and aviation policies.

 

• The U.S.-U.A.E. Business Council sent a letter to the Obama Administration and to Congress, which we shared previously, and a new op-ed appeared this week in The Hill newspaper.

U.S. Travel, which represents a broad range of hotels, attractions, and state and local tourism agencies – has launched an ad campaign and media effort to support Open Skies.

FedEx recently published additional background information about this issue on the FedEx blog.

Emirates Airline recently issued an official response of its own to U.S. carrier allegations, stating unequivocally and for the record that it “does not receive and never has received any form of subsidy from the U.A.E. government…The real issue at hand is that the three biggest U.S. carriers…want to further limit the international air transport choices available to American consumers, airports, local and regional economies.”  Emirates has launched a dedicated Open Skies page on its website with background and additional information on this issue.

Etihad Airways commissioned The Risk Advisory Group Plc (RAG) to conduct a review of financial benefits provided to American, Delta, and United Airlines. Through the use of governmental records, litigation filings, annual reports, and governmental and regulatory reports, RAG found that the Big 3 U.S. carriershave enjoyed over $71 billion in benefits from the U.S. government since 2000 (read the full report here). Etihad has also launched a dedicated website with background additional information on this issue.

• Last week, the Brookings Institution released a new analysis that documents how Open Skies has generated substantial gains for travelers through competition and lower fares, and suggests that further liberalization of aviation policies and the removal of political obstacles will create additional advantages.

 

The U.S.-U.A.E. Business Council believes that any effort to restrict Open Skies policies could have a far-reaching impact on this important bilateral relationship. As such, we encourage the Obama Administration to continue taking a careful and balanced review of this important issue.

The Business Council appreciates the continued input and support from its members on Open Skies policy. We will continue to provide updates as the debate goes on. Please let me know if you have any questions.