Middle East and U.S airlines trade charges on subsidy claim

Middle East and United States airline chiefs traded accusations on Monday over a campaign by major U.S. carriers.

According to Reuters, Middle East and United States airline chiefs traded allegations on Monday on a campaign by chief U.S carriers to limit what the look is deeply subsidized competition from Gulf Corresponding.

In the US, airlines are working to encourage the government of United States to change the Open Skies contracts with the Qatar and United Arab Emirates, alleging them of heaping their airlines with over $40 billion in grants and twisting competition. Etihad Airways, Qatar Airways and Emirates deny the claim of subsidy.

Akbar Al Baker, the Chief Executive Officer of Qatar Airways said any alteration in the agreement might spark protection.

Al baker stated in an annual meeting at the International Air Transport Association in Miami, "Any rollback of liberal market access and Open Skies policies will reverberate across the whole world and will lead to retaliatory protectionism affecting all aspects of trade,"

After the comments by Al Baker, Tony Tyler Director General of IATA said they were in support of liberalization. The body has said it does not have any right to officially act on the problem.

While replying to the journalist’s questions, Mr. Tyler said, “IATA and its members are fully in favor of growing liberalization, free and fair competition, that's the policy of members and policy of IATA,"

The Chief Executive Officer of American Airline Group, Doug Parker recognized that the carrier has got a code share coalitions with Etihad and Qatar, but stated that US must impose its trade policies.

After Al Baker comment, Parker said during the press conference, "We've produced evidence to the U.S. government that indeed other countries are subsidizing carriers that are flying to the United States,"

Parker said the government of US was working thoroughly on the matter and was in continuous contact with the airlines. He also said that the government of US timeline was unclear, but he believes it will act soon.

While United States carriers such as American and Delta Airlines have closed positions on the matter, other such as FedEX Corp and JetBlue Airways Corp partner of Emirates have raised up for the open Skies contract, raising voice that alteration might set a bad example.

Lufthansa of Germany, whose business is on Asia routes have been damaged by the Gulf carriers competition.

Carsten Spohr, CEO of Lufthansa said in a news briefing, "There's various ways to how you can achieve balance of openness. It could be limitations of destinations, limitations of frequencies,"