FlightGlobal: US govt denies that Gulf subsidies talks have ended
7/26/16
Ghim-Lay Yeo
The US government says talks with the United Arab Emirates and Qatar on alleged subsidies to three Gulf carriers are still ongoing, refuting a recent Abu Dhabi media report stating that US officials plan no further action.
A State Department spokesperson tells FlightGlobal that the headline of a story published today in Abu Dhabi-based newspaper The National is "wholly incorrect".
"The State Department’s discussions with carriers are ongoing," she adds.
The newspaper report had stated that the US government had ended talks over the issue with no plans for further action.
US officials met with their UAE counterparts on 18 July, followed by similar talks with Qatari officials on 25 July. Both rounds of talks were described as "constructive informal technical discussions" on the respective bilateral civil aviation relationship.
"The US government takes seriously the concerns raised by some of our airlines. We have decided to address these concerns through informal, technical discussions that are ongoing," adds the State Department spokesperson.
The allegations of subsidies benefiting three Gulf carriers - Emirates, Etihad Airways and Qatar Airways - have led to a protracted and heated dispute that has divided the airline industry.
Delta Air Lines, American Airlines and United Airlines accuse the Gulf carriers of receiving $42 billion of state subsidies from the UAE and Qatar. The US carriers, backed by some labour groups, want the US government to reconsider open-skies deals with the two Gulf nations.