US airlines officials meet with government about air freight subsidies, practices by Gulf carriers

The global air cargo market has always been competitive, but over the previous few years the expressions from American carriers about partial practices injuring the North American market for pricing and capacity have been climbing higher. Allegations that big subsidies have permitted air cargo centres Emirates, Etihad Airways, and Qatar Airways to greatly disturb the air cargo market for U.S. carriers have been growing due to volatility those ups and downs of capacity appear to have brought to the international market.

The leader of major airlines held a meeting with state secretary John Kerry. In this meeting they describe the concerns and position a solid situation for collective American action against the subsidies that they declare three Gulf carriers revealed have each received.

According to the US airlines the extended meeting saw the leaders of American Airlines and Delta have the chance to state their explanations and claim that the management statements the practices of the UAE and Qatar that have disrupted the market. No evidence was issued about the result of the meetings and what action, if any, might consequently be planned as a result.

Officially “American, Delta, United, Continental Holdings, and their alliance said that Emirates, Etihad Airways and Qatar Airways have accepted some $42 billion in grants from their state governments in the previous years. Such hefty amount of subsidies has had a massive impression on capacity in the United States as the carriers have transferred their attention for more in the road of the North American and European markets, constructing their own market part and adversely impacting pricing.

POFS stated that due to the Gulf carriers’ absence of financial transparency, American Airlines, Delta Air Lines and United Airlines take on a wider search round the world for data about those airlines, government subsidies and other imbalanced trade practices. During this unequalled inquiry, the US airlines gained hundreds of record papers of fiscal statements, agreement papers and other evidences from corporate registries in many countries where the Gulf carriers have local operations.

The reaction from Gulf based carriers is a rejection of subsidies and that service concerns have understood them gain share, not pricing competitiveness due to subsidy. It’s superbly a stable situation and one that would want the reformation of trade policy to have the government interfere on behalf of the US carriers.