US: Airlines challenge open-skies agreements

Chief executive officers of the three largest U.S. airlines sought to limit the expansion of Persian Gulf carriers in the domestic market because of government subsidies they said provide an unfair competitive advantage.

The top executives from several domestic carriers met in Washington D.C. last week to discuss limiting foreign carrier’s entry into U.S. airports. Now the head of Emirates has struck back, arguing that American Airlines, United Continental and Delta Air Lines all benefited from U.S. bankruptcy laws that let them shed debt and cut operating costs to continue flying.

“If Delta, United and American Airlines are truly concerned about Gulf carriers, they shouldn’t be running to Washington for protection. There’s plenty they could do on their own, from using profits to improve their mediocre service, to burying the hatchet with Gulf carriers by offering to form partnerships,” Bloomberg’s Adam Minter wrote.

Full Content: Chicago Tribune

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