Open skies row over competition between US, Gulf airlines to see further discussion

Published July 27th, 2016 - 10:00 GMT
Gulf carriers Emirates, Etihad, and Qatar Airways have denied claims by US carriers that they were unfairly subsidized. (File photo)
Gulf carriers Emirates, Etihad, and Qatar Airways have denied claims by US carriers that they were unfairly subsidized. (File photo)

The US government says talks over allegations the three major Gulf carriers are violating the US’ open skies policy have not finished.

The clarification comes after media reports, quoting a US State Department spokesperson, said the US government would not be taking any action.

The State Department refuted the reports late on Tuesday, tellingGulf News its “discussions with carriers are ongoing”.

The US State Department said it met with Emirati officials on July 18 and Qatari officials on July 25 after US airlines America, Delta, and United alleged Emirates, Etihad Airways, and Qatar Airways were unfairly state subsidized. The Gulf carriers have denied the claims.

“The US government takes seriously the concerns raised by some of our airlines. We have decided to address these concerns through informal, technical discussions that are ongoing,” the State Department said in an email.

It is understood that the Gulf carriers did not participate in the government-to-government discussions.

The allegations, known as the Open Skies debate, center around claims Emirates, Etihad and Qatar Airways have collectively received $42 billion in subsidies from their Gulf government owners. The US carriers had asked for the US government to enter into negotiations with Qatar and the United Arab Emirates and freeze access to the Gulf airlines.

But the allegations, which started more than 18 months ago, have mostly fizzled out and Emirates, Etihad and Qatar Airways have continued to expand into the US.

On Tuesday, Etihad announced it would add capacity on its Abu Dhabi-New York route with a second daily Airbus A380 service from June, 2017.

By Alexander Cornwell

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