Under Trump, new war turns heat on Gulf airlines

It seems the demand by some US airlines to President Trump has made an impact through the issue recently faced by Emirates Airlines flight from Seattle. The flight was delayed for more than six hours at the airport on February 2 as the company was looking for a small spare part that needed to be replaced but only got after numerous contacts and painstaking efforts.

This means the reputation of this Gulf company will be affected in the US and worldwide. This improper conduct towards Emirates Airlines by Delta Airlines, which withheld that part, gives the impression that war between Gulf and US airlines has started before the new government makes any decision in this regard.

A spokesman for Emirates Airline confirmed this behaviour was fuelling tensions between the rival companies already ignited by the issue of government subsidies to Gulf airlines.

According to the US media, three major US airlines recently sent an urgent letter to Trump asking him to intervene against Gulf airlines. The ‘Big Three’ US companies — American, Delta and United Airlines — are demanding an end to the ‘Open Skies’ Agreement and stop what they described as “subsidy policies” enjoyed by Gulf companies and defend American workers.

These companies had previously requested the Obama administration, leading the former US government to form a committee of three departments: trade, transport and state, to discuss objections and stances, and investigate all aspects of this issue.

This coalition of carries aims at pushing the US government to reconsider the Open Skies Agreement, and set limits on the expansion of Gulf carriers in the US market.

Many Gulf states have signed this agreement with the United States, including Oman. The agreement allows the exercise of fifth freedom transport rights through intermediate points and points beyond the two countries, in addition to the possibility of operating national carriers of both countries using joined codes.

Meanwhile, Oman is planning to purchase large aircraft capable of flying to the US in the next two years, increasing the number of passengers between the Sultanate and the US in the upcoming period.

Today there are accusations against Emirates and Qatar carriers by US airlines that they receive government aid to take control of this sector. The recent letter to Trump stated that “workers in the US aviation industry need your help” and “without urgent action by your administration, Americans who work hard will face unfair competition from Gulf companies owned by the government”.

The letter said UAE and Qatari companies “have received subsidies at unprecedented levels”, estimated at $50 billion to control the global aviation industry. The letter also accused Gulf companies of “violating the law” and continuing to expand in the US market. The letter concluded with: “Mr President, we need your personal intervention to address the situation. American jobs are at stake.”

This letter was also delivered to the new US Secretary of State, Rex Tillerson, based on the new US administration’s desire to establish protectionism under the slogan ‘America First’.

US airline companies believe that by receiving aid, Gulf airlines undermine “the fundamentals of fair and open competition and contradicts the basis of the Open Air Agreement and the rules of fair competition”. They are calling upon the US government to impose restrictions on the three Gulf carriers until a decision is taken on the claims of this aid.

Gulf airlines had previously responded through Qatar Airways to these false allegations that their services damage US carriers since they do not compete with any US carrier on any of the direct flight lines. Instead, they serve some Asian countries not reached by US airlines, which means the services provided by Gulf airlines support US carriers.

For example, Qatar Airways and other Gulf airlines provide US carriers with traffic, including American Airlines, through joined-code flights, One World alliance, JetBlue and others.

It seems the next phase will witness further escalation of this issue in light of statements made by Donald Trump against globalisation and labour protectionism.