UAL Corp entered Chapter 11 and promptly offloaded USD9,000,000,000 of pension underfunding to the US Pension Guarantee Fund, a US government agency tasked with picking up the pension tab from other US companies in similar trouble. Call it subsidy or whatever you like, but it certainly is far from a level playing field.
The real issue at stake in the current US EU Open Skies 1st round is majority non US ownership of US airlines. The Europeans argue that if this were allowed there would be such an influx of foreign capital to US airlines that Chapter 11 would not be required.
The US have allowed 25% max with control of commercial aspects only - safety, security, and availability to the US military in time of war have to remain in the hands of US citizens.
This is a US window dressing exercise and does nothing significant to encourage influx of foreign capital to US carriers.
The Heathrow card has been played too early by the EU and the US have offered little in return in the ownership arena.
The chances of all 25 EU member states accepting this deal is slim. We will know for sure by the end of March 2006.