The US three vs the Gulf three - what does it mean for IATA?

[HIALS]

Media reports would have us believe that a "nasty war of words" between these groups almost overshadowed the IATA annual meeting in Miami this week.

It seems that this significant, emerging, political issue could substantially shape the future of the mega-end of our global industry. It has even been suggested that it could rupture IATA itself (though Tony Tyler is quick to play that idea down).

I am sure that the US three and the Gulf three are convinced of their arguments. I am also sure that the propaganda war they wage will be biased and somewhat parochial.

Do any PPRuNe contributors have facts and figures (or even informed opinions) that can help us all to remain informed about this topic as it develops?

[Intruder]

The 3 big US carriers are reeling because their 'race to the bottom' strategy of declining customer service has come back to bite them hard. Now they want more protections internationally, even as they have used deregulation to absorb smaller carriers, increase code shares with European carriers, and replace real airplanes with 'regional jets' on longer and longer routes domestically.

OTOH, the Gulf carriers are rife with direct government subsidies, so they also have an advantage.

I suspect the 'open skies' theory will be dialed back a bit in the near future...

[El Bunto]

It has even been suggested that it could rupture IATA itself

As a passenger I struggle to see that as a bad thing.

Imagine that Ryanair, Easyjet and Wizz all formed a 'trade association' to set traffic areas, capacity limits, tariffs and common passenger-screwing policies. There would be outrage.

But IATA is tolerated because.. it's 70 years old? Or just because interlining is convenient*?

Smash it and make airlines to compete like any other business.

* plenty of non-IATA airlines also offer interlining, without fixing tarrifs. Because doing so is illegal for all except IATA.

[PAXboy]

IATA has long since reached the stage where it considers itself of greater importance than anything else. I'm NOT comparing them to FIFA but that bunch only looked after themselves and are now dead in the water.

Before too long, the M.E. carriers will exert their full influence and IATA will come apart at the seams. That's what humans do. For Pax? IATA has always been irrelevant and soon it will be so for the carriers. That is because it will no longer be able to provide the cushion against real life and it will crumble.

[racedo]

IATA may come apart at the seams but denying landing rights to the Gulf three which will be followed up by US allies will dent their growth overnight.

[PAXboy]

'Tit-for-tat' trade disagreements are stock in trade for groups that have 'world' and 'international' in their title!!

The Americans love free trade as long as it's in their favour.