October 1, 2013
Fellow ALPA Pilots,
Today, Emirates Airline (EK) began B-777 scheduled service between Milan and JFK. This flight is not part of a code share or alliance; this is an Emirates plane flying directly from Italy to the United States in direct competition with U.S. carriers and ALPA members. Unless we quickly and decisively take action now, we can expect to see many more invasions like this by state-supported carriers seeking to undercut our companies and eventually take our routes entirely.
As you’ve heard from me before, the Middle Eastern carriers are expanding at a rate never before seen thanks to their governments’ strategic focus on their industries. Dubai, Abu Dhabi, and Qatar have all dedicated state resources to facilitating their airlines’ rapid growth. These countries have vertically integrated conglomerates, owning everything from the oil fields and refineries to the airports and airlines. The huge state support that results from this model enables these carriers to dramatically reduce the costs of running their businesses compared to U.S. carriers, giving them a competitive advantage in the marketplace.
But despite this, we have turned them back before. In June, Qatar abandoned plans to fly directly between Athens and JFK because of weak demand, and Emirates dropped out of the Hamburg-JFK market for similar reasons; Delta and United, respectively, are currently flying those routes profitably. However, past success cannot be taken for granted. Collectively, Emirates, Etihad, and Qatar Airways have more than 1,000 airplanes on order and all of them have plans to expand into as many markets as possible. These carriers are aiming for all of our international routes right now and all our domestic routes in the future.
Without a doubt, I know that U.S. airlines are the greatest in the world. Our problem is not our ability to compete, but that our competitors not only get support from their own governments, the U.S. government chips in as well. The Export-Import Bank is still trying to use U.S. taxpayer money to fund widebody aircraft purchases by state-subsidized carriers around the world. The Department of Transportation is currently considering granting a “rent-a-code” agreement that would allow Emirates to fly passengers whose fares are being paid for by the U.S. government. And plans continue to move forward on a CBP preclearance facility in Abu Dhabi–an airport that no U.S. carrier flies to.
These issues are just symptoms of the problem we have in Washington: a government that often neglects, and sometimes even undermines, our airline industry. This week, ALPA released a new video that makes clear the scale of the threat from these heavily state-backed foreign airlines if the U.S. government fails to act.
Members of Congress and the Administration need to know that the people who elect them care about our industry and are willing to fight to keep it strong. If you haven’t participated in our Call to Action against the CBP preclearance facility in Abu Dhabi, please take the time to do so now. And show your support for your career and our industry by supporting ALPA-PAC, our most effective weapon for pilot partisan change in D.C. All of these pieces are connected and we cannot expect victory on the broader agenda without winning these battles.
The MXP-JFK route could be just the beginning of the Emirates’ takeover of our industry or it could be the high tide before we turn them back. I hope I can count on your support.
Sincerely,
Capt. Lee Moak
The union letter that went out addressing the situation, for what it is worth. Cheers.