The National - News

Open Skies vigilance will be needed

▶ ‘Big 3’ US carriers a threat despite failure of airlines tax proposal

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It was the biggest concern expressed by regional airline representa­tives at the Arab Air Carriers Organisati­on’s annual general meeting in Sharjah last month: a “regressive” proposal to tax foreign airlines operating in the United States.

That proposal – submitted as an amendment to the US tax reform bill by senator Johnny Isakson of Georgia – was ditched over the weekend, causing internatio­nal carriers, including those from the Middle East, to breathe a sigh of relief.

While this amendment has been dropped, it has shaken the Middle East aviation industry as indication of a possible change of tack by the “Big 3” US carriers – Delta, United and American Airlines – as they continue their anti-competitio­n campaign against Emirates, Etihad and Qatar Airways.

It has been a while since press releases were issued on behalf of the US Big 3, slamming the Arabian Gulf carriers’ alleged “unfair” expansion in the US, which the airlines deny.

Now we have US parliament­arians such as Senator Isakson – whose Georgia constituen­cy is home to Delta – quietly tabling motions that, if passed, would have had a damaging impact on the Gulf, and other airlines’ internatio­nal

Global aviation’s passenger flows, route networks and aerospace trade and jobs are intrinsica­lly linked

business. Senator Isakson could not be reached for comment, but Danny Sebright, the president of the influentia­l US-UAE Business Council, said the amendment was “an attempt by US carrier Delta to destroy competitio­n”.

If this is the case, it calls for increased vigilance to prevent the Big 3 from eroding the Open Skies agreements that permit free market expansion in the United States.

Mr Sebright said he was confident his council had “inoculated against” efforts by the US carriers to find a champion within Donald Trump’s administra­tion. But he admitted there remained work to do to prevent legislativ­e action not supported by the Trump administra­tion from going through.

Maintainin­g Open Skies agreements is important not only for the sake of Emirates, Etihad and Qatar Airways, but for the entire global aviation industry, whose passenger flows, route networks and aerospace-related trade and jobs are intrinsica­lly linked.

The US airlines must recognise they are competing not only against their counterpar­ts in the Gulf, but also against airlines all over the world and that some of their proposals risk coming back to bite.

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