9/11 comment escalates US-Gulf airlines spat over subsidies

[Omaha Steve]

Source: AP-Excite

By DAVID KOENIG

DALLAS (AP) — U.S. airlines have been sparring for several years with fast-growing Persian Gulf rivals that seem to be poaching passengers from the Americans. Now, a CEO's comment that dragged 9/11 into the debate has escalated the fight.

The three largest U.S. airlines claim that three big Gulf carriers have received more than $40 billion in subsidies from their governments since 2004, making competition with them unfair because their costs are artificially low. The CEOs of American, United and Delta are asking federal officials to renegotiate or kill treaties that have allowed airlines from Qatar and the United Arab Emirates to increase flights to the U.S.

American, United and Delta say that unless the treaties are changed, they will be forced to cut back or drop international routes.

State-owned Qatar Airways, Emirates and Etihad Airways say that the U.S. airlines are merely blocking competition and protecting the high fares they charge on international flights. Some U.S. consumer groups agree.

FULL story at link.



FILE - In this June 17, 2014 file photo, Delta Air Lines CEO Richard Anderson speaks at the grand opening of the new Delta Flight Museum in Atlanta. A recent comment from Anderson about 9/11 has escalated a dispute between U.S. airlines and fast-growing Persian Gulf competitors. (AP Photo/David Goldman, File)


Read more: http://apnews.excite.com/article/20150219/us--airlines-subsidies-c0d8cbbf75.html

[billhicks76]

1. Inside Job

Too bad people are too afraid of their appearance to join the multitudes that believe Bush and Co purposefully allowed it to happen

[jberryhill]

2. The rates are pretty amazing

I had a meeting in Singapore two weeks ago and was amazed at how low the subsidized price of a ticket from Philly was on one week notice ($1300) on Qatar Air. The Doha airport is pretty amazing. But, yeah, the U.S. carriers can't compete with billionaires who don't care if the thing turns a profit.

[davidpdx]

4. For that distance that is a pretty good price

That is a long ass flight. I pay anywhere from 1,200-1,800 from Seoul to the US west coast (SF or Seattle)

[Hulk]

3. I don't know much....but,

I am led to believe that when foreign companies are subsidized by their own governments, and then tossed into the world market, they have an unfair advantage of "the bottom line" from day one.

One such example is the fact that countries that offer health care to ALL their citizens have corporations and businesses that can work with a lower bottom line because their expenses are less for providing health insurance to their employees. This seemed to be a big factor in pushing for universal health care. We didn't quite get it ...yet, but we are getting closer, and I believe that is going to make us more competitive in the world market.

Maybe the American airlines have a valid point. I'm not sure how this plays in to the last sentence before the picture above: "... the U.S. airlines are merely blocking competition and protecting the high fares they charge on international flights. Some U.S. consumer groups agree. "