The lobbying by American, United and Delta will include lawmakers overseeing transport and trade, plus other legislative leaders, said one of the people, who asked not to be identified because details aren’t public. The airlines also want to keep pressing Secretary of State John Kerry and Transportation Secretary Anthony Foxx, the person said.
Courting House members and senators opens a new front in the campaign against what American, United and Delta say are unfair subsidies for Doha-based Qatar Airways and to the UAE’s Emirates Airline and Etihad Airways. The trio of state-backed gulf carriers has gotten more than $42 billion in such aid during the past decade, according to the U.S. airlines.
American, United and Delta say the gulf carriers are able to undercut competitors on fares — drawing travelers to their bases in Qatar, Abu Dhabi and Dubai and away from European and Asian hubs served by the U.S. industry.
The U.S. should modify the so-called Open Skies agreements with Qatar and the UAE, according to the U.S. airlines. The U.S. has negotiated more than 100 such treaties since 1992, allowing direct access to cities around the world and, in general, spurring more competition and lower prices.
Washington Meetings
U.S. airline executives met with federal officials in January to lay out their case against Emirates, Etihad and Qatar Airways, without making the evidence public. They followed up last month by sharing an investigative report with officials of the European Union.
American, United and Delta scheduled a briefing for reporters in Washington on Thursday, and documents supporting their case will be posted online afterward, one of the people said. That meeting includes unions representing pilots at each of the carriers as well as American and United flight attendants, a reminder of airline employees’ heft as voters.
“For the airlines, the best venue to address these extreme cases of subsidized competitors is through the provisions of the Open Skies agreements with Qatar and the UAE, which allow for consultations between the nations to address the subsidy issue,” Chicago-based United said in a statement issued on behalf of all three carriers.
‘Bluster, Flimflam’
Emirates President Tim Clark, speaking to reporters Thursday in Berlin, called the U.S. airlines’ claims “bluster and flimflam” and said he will travel to Washington this month to defend his carrier against the allegations.
“They must be prepared for a very robust response from us,” Clark said. Emirates has added value to the U.S. cities it serves with “very reasonable” fares and connections that are more favorable than those provided by U.S. competitors, he said.
The State Department is reviewing the U.S. airlines’ materials, said an official who wasn’t authorized to comment publicly. State is working with agencies including the Transportation and Commerce Departments on potential next steps, the official said.
The administration is weighing two competing issues — the concerns raised by the airlines and the benefits to consumers, the U.S. aviation industry, American cities and the U.S. economy as a result of the Open Skies policy, the official said.
While the Obama administration takes the airlines’ concerns seriously and will thoroughly review them, it remains committed to the Open Skies policy that has boosted the U.S. economy through increased travel and trade, and job growth.
Asked whether the State Department was raising this issue with Qatar and the UAE, the official said that diplomatic conversations with allies remain private.
