Emi­rates Air­line re­jects Delta's crit­i­cism of over­ca­pac­ity

The Pak Banker - - COMPANIES/BOSS -

Emi­rates Air­line [EMIRA.UL] said Tues­day that state-owned Gulf Arab air­lines were not to blame for over­ca­pac­ity on ser­vices be­tween the United States and Dubai, re­ject­ing crit­i­cism by U.S. car­rier Delta Air Lines (DAL.N).

Delta said Sun­day it had re­duced flights be­tween At­lanta and Dubai this win­ter, blam­ing over­ca­pac­ity on U.S. routes to the Mid­dle East by sub­si­dized and state-owned air­lines, un­der­scor­ing a trade row.

Delta's at­tempt to pin the blame on Gulf car­ri­ers is "plainly a po­lit­i­cal play, or a thin ex­cuse to prop up fares at a higher level by lim­it­ing ca­pac­ity", an Emi­rates spokesper­son said in a state­ment. The Part­ner­ship for Open & Fair Skies, a U.S. air­line­u­nion group in­clud­ing Delta, al­leges Emi­rates, Eti­had Air­ways and Qatar Air­ways re­ceived $42 bil­lion in sub­si­dies from their gov­ern­ments in the past decade. They say this al­lowed the Gulf air­lines to start dump­ing ca­pac­ity into the United States, driv­ing down prices and push­ing out com­peti­tors. Gulf car­ri­ers deny they are sub­si­dized and say poor cus­tomer ser­vice has caused U.S. air­lines to lose mar­ket share.

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