Airline turf wars: the latest gulf conflict

[Shinobu]

There's a big argument over the middle east going on right now that many people aren't aware of. Here's some background:

Gulf Carriers (AKA ME3): The gulf carriers are Emirates, Etihad, and Qatar Airways. All of them are government owned and operate on the same business model. They use their hub airports to facilitate travel between the hemispheres.

Open Skies: Open skies agreements allow unrestricted international travel between the US and countries that engage in an agreement. Neither government in the agreement regulates scheduling or pricing.

So here's where the conflict comes in:

It is America’s latest Gulf war, pitting the giants of US aviation against their wealthy upstart rivals from the UAE and Qatar – and both sides are crying foul at the other’s practices.

The Open Skies treaty that allows all airlines involved to operate freely is at risk after the big three US carriers asked the American administration to rip up or redraw the agreements. Some warn that the bubbling dispute couldthreaten the foundations of modern flying and even trigger a full-blown trade war.

The airlines involved are Emirates, Etihad and Qatar Airways on one side and Delta, United and American Airlines on the other. Sir Tim Clark, the British chief executive of Emirates, said: “We didn’t want this fight. But we’re not some African or Asian minnow. We have a $37bn balance sheet. If they think we’re going to get pushed around – game on.”

The phenomenal growth of the Gulf airlines has long been a thorn in the side of established European carriers such as Lufthansa and Air France. But lately, they have been joined by Delta, United and American Airlines, who have started to rail against the threat posed by airlines that have raised service standards on international flights and whose hubs are ideally situated at the junction of Europe, Asia and Africa.

In Clark’s words, the row “went nuclear” in January, when the US trio submitted a 55-page dossier to Barack Obama’s administration alleging that Gulf airlines were benefiting to the tune of $40bn in state subsidies. That was unfair competition, distorting the market and hurting their businesses, they said, especially on routes to Asia. And it put American jobs at risk.

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As you can see, this has become a fairly contentious issue, and other companies have chimed in.

JetBlue is not very impressed with the other airlines' arguments.

Neither are some other companies.

That being said, various labor unions support the US carriers due to unions being illegal in the UAE and Qatar.

And this is starting to turn into a shitshow:

Delta's CEO links gulf carriers to 9/11.

Qatar Airways's CEO lies about easily verifiable info about their employment policies and claims this is pro-union slander.