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Gulf carriers hit back in ‘unfair subsidies’ row

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Gulf carriers have rejected claims from American airlines about receiving unfair subsidies and said their US rivals’ poor service has caused them to lose market share.

The US-based Association of Flight Attendants-CWA (AFA), a member of the Partnership for Open and Fair Skies, had highlighted an analysis released by Georgetown University professor Dr Rob Britton, titled, ‘Reconsidering the US-UAE Aviation Relationship’.

The white paper reveals that Qatar Airways, Etihad and Emirates received subsidies and benefits worth a total of $42 billion from their respective governments, possibly violating the Open Skies agreement.

"The free hand-outs the Gulf carriers received to rapidly expand their fleets and international routes is alarming," says AFA International president Sara Nelson. "It is a text book example of what an un-level playing field looks like, and countries that circumvent our bilateral agreements and allow repressive labour standards must be stopped."

Britton’s analysis found that this violation of the Open Skies policy is resulting in a net loss of more than 800 US jobs every time a US airline loses a route to one of the Gulf carriers.

The Partnership for Open and Fair Skies is calling for the US government to take these concerns up immediately with representatives of the UAE and Qatar.

"Whether it’s urging the US DOT to deny Norwegian Air International’s foreign air carrier permit because it doesn’t meet the labour standards of the Open Skies agreement, opposing Fast Track Authority for secretly negotiated trade deals, or calling out certain Gulf states for cruel labour practices and unfairly subsidising their airlines, these international issues are all connected, and they all affect flight attendants," claims Nelson.

"It all comes back to protecting US aviation jobs and upholding the highest level of safety. We will continue to work with industry partners to protect flight attendants and our passengers."

American Airlines Group, Delta Air Lines and United Continental Holdings submitted the claims about subsidies.

In reply Etihad Airways said it is committed to setting the record straight regarding these "unsubstantiated allegations".

And Qatar Airways chief executive Akbar Al Baker said that any money the airline received from the state was "legitimate" equity.

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