US, UAE Strike Open Skies Agreement

The United States and the UAE have struck a deal in which they “strongly reaffirmed the 2002 UAE-US Air Transport Agreement and the fundamental principles of Open Skies”, following years of dispute between the regions’ carriers.

According to USA Today, Emirates – accused of unfair competition by rivals Delta, American Airlines and United Airlines – has agreed to “voluntarily open up their accounting books by publishing annual financial statements ‘consistent with internationally recognized accounting standards’”.

The report also states that Emirates currently has no plans to launch direct “Fifth Freedom” flights between the US and destinations other than the United Arab Emirates, the airline’s home country.

The Associated Press reported that an agreement was signed between US Assistant Secretary of State Manisha Singh and Emirati ambassador to the US, Yousef al-Otaiba, after extended negotiations. The financial disclosures are an attempt to assuage concerns among US airlines that Emirates received substantial subsidies from the UAE government, resulting in unfair competition.

The US airlines also objected to Emirates launching so-called “Fifth Freedom” flights, which would take passengers from the US to other countries without a stop in the UAE. The deal does not mean an end to government subsidies of Emirates; rather it both acknowledges that such payments can hurt competition and are “neither uncommon nor necessarily problematic.”