CEO DATELINE - New group further divides airline association's membership
CEO DATELINE - New group further divides airline association's membership
- August 5, 2015 |
- Walt Williams
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Four passenger airline and cargo carrier companies have formed a new coalition to back Persian Gulf countries in their fight with the largest U.S. airlines, leaving Airlines for America facing a divided membership.
At issue are allegations that Qatar and United Arab Emirates have subsidized their state-owned airlines in violation of the Open Skies agreements each country signed with the U.S., giving them an unfair competitive edge. Three airlines—Delta, United and American—are leading the charge against the two nations by calling on U.S. officials to launch a review of the countries' practices.
All three airlines are members of A4A, but the group is sitting out the fight because four of its other members are taking the side of the Gulf countries. JetBlue Airways, Hawaiian Airlines, FedEx and Atlas Air Worldwide announced Monday they had formed a new coalition to oppose the efforts of the "Big Three" airlines.
"The Big 3 do not speak for all, or even most, U.S. airlines," Hawaiian CEO Mark Dunkerley said. "Our coalition believes that the United States should honor its Open Skies commitments, which opens markets for U.S. carriers, promotes competition on international and domestic routes and facilitates U.S. exports."
When contacted by Politico, A4A spokeswoman Jean Medina reiterated that while the association supports Open Skies agreements, since "this is one of the rare issues on which we do not have consensus among our members, we have not taken a position." http://politi.co/1SK05FK
Not so shy was the U.S. Travel Association, which has taken the side of the Gulf countries. CEO Roger Dow welcomed the new coalition as an ally in what he characterized as an assault on Open Skies agreements in general.
"(The new coalition) sends a potent message that not only does the business community overwhelmingly oppose what the Big Three and their unions are trying to do to Open Skies—but even major elements of their own industry disagree with them as well," Dow said.
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