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Aviation body IATA’s annual meet got off to a stormy start here with Gulf carriers attacking their American counterparts over “protectionism” and the latter attempting to check their rivals’ growth, saying they were doing so with unfair government backing.
The issue came up for discussion at the inaugural session of the International Air Transport Association’s (IATA) annual general meeting and World Air Transport Summit here, with Qatar Airways CEO Akbar Al Baker urging the IATA members to support liberal air travel, calling protectionism a “threat” to aviation.
Baker read out a statement calling upon IATA to safeguard the flying freedoms of airlines. Gulf carriers have accused their American counterparts of not allowing them to fly freely to the US.
Etihad Airways, Emirates and Qatar Airways have been embroiled in a row since January with Delta, American Airlines and United after the US carriers released a 55-page document detailing allegations of unfair government subsidies and other financial incentives given to Gulf carriers.
The US carriers claim their Gulf rivals have enjoyed unfair financial benefits to the tune of $42 billion over the past decade, in contravention of the rules of open skies — allegations refuted by the Gulf airlines.
The issue was mentioned in a passing reference by IATA Director-General and CEO Tony Tyler who said “it is no secret ...that there is an underlying tension in our industry.”
“It is often described as a rift between state-owned airlines and those owned wholly or predominantly by private shareholders.
“Others see it in terms of government protectionism. Some interpret it as a clash between aviation business friendly countries and those less focused on maximising the economic and social benefits of connectivity,” Tyler said while presenting his annual report.
India, a key market
The matter is of special significance to India, which is the largest market for Qatar Airways, Etihad and Emirates, whose joint share of traffic out of India to the US and Europe is estimated to have quadrupled between 2008 and 2014 — from over 8 per cent to 35 per cent.
Shaken by the development, the US and European airlines have virtually joined hands to take on this stiff competition.
US airlines have already moved their government in a bid to persuade it to amend the ‘Open Skies’ agreements with Gulf nations, which they claim were distorting competition.
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