Gulf airlines’ US allies want ‘skies open’

Bloomberg

The major US airlines that allege unfair competition by Persian Gulf rivals can’t show that new flight routes are costing US
jobs, allies of the Middle Eastern carriers told Secretary of State Rex Tillerson.
Opening discussions with the governments of the United Arab Emirates and Qatar over trade claims could hurt travel and tourism and encourage other countries to take actions against the US “with some significant unintended consequences,” Bill Flynn, chief executive officer of freight company Atlas Air Worldwide Holdings Inc., said.
Flynn was among several corporate executives who met with Tillerson in Washington in
support of maintaining the existing aviation agreements
with the Gulf nations. He was joined by FedEx Corp. President David Bronczek and JetBlue Airways Corp. Chief Executive Officer Robin Hayes, which are are part of the US Airlines for Open Skies, a coalition that has lobbied to preserve the UAE and Qatar deals.
The meeting stoked a two-year-old fight over the US expansion of Emirates, Etihad Airways PJSC and Qatar Airways Ltd. The UAE and Qatari governments enabled the carriers’ growth by providing them with $50 billion in subsidies to buy new jets and cover money-losing routes, according to Delta Air Lines Inc., United Continental Holdings Inc. and American Airlines Group Inc.
The three biggest US carriers are lobbying the Trump administration to consult with the
Gulf nations over alleged violations of the “Open Skies” agreements that govern flights among the countries.