Future of Open Skies Hinges on the Definition of One Word: Subsidy
Photo Credit: Delta, United and American are calling for the U.S. government to freeze Gulf carriers' flights because of allegedly unfair government subsidies, but Etihad, for one, says it doesn't receive any. Partnership For Open & Fair Skies
Skift Take
Well, at least the parties are talking and sitting around a table but things will probably get a ton more strained before this whole thing is over.
While Delta, American and United argue that Gulf carriers have benefitted from billions of dollars in direct government subsidies, Etihad, for one says it hasn't received any subsidies and counters that the U.S. carriers have repeatedly wiped out debt and slashed employee pay through bankruptcies, which are another form of subsidy.
Is this rancorous Open Skies debate, much of the argument revolves around the definitions of subsidies versus bankruptcies, pension guarantees, appropriate governmental aid or local ways of doing business.
Some of the key adversaries in the Open Skies debate, including Delta and American on one side, and Etihad and the U.S. Travel Association on the other, debated subsidies, bankruptcies and the harm or benefits of the growth of Gulf carriers at a forum in Las Vegas.
Speaking on a panel at the CAPA Americas Aviation Summit April 28, Jim Callaghan, general counsel for Etihad, said the airline receives no government subsidies, although it carries debt
