(MENAFN- The Peninsula) Qatar Airways (QA), in a 'white paper' submitted to the US, has refuted the subsidy allegations against it by the 'Big 3' US carriers.
The submission comprehensively addressed and answered all issues raised in the Open Skies debate, which has put into question the long-standing US policy of allowing carriers to fly to and from the country with minimal government interference.
The Big 3 € American, Delta and United (and their unions) - have been pressing the US government to depart from its pro-Open Skies stance and impose unilateral limits on services operated by Gulf airlines, though the US Open Skies policy was designed by the government to ensure that US carriers were free to operate their extensive networks without foreign government restrictions on the level and routings of their services, QA said in a statement yesterday.
The biggest US carriers have made ample use of their behind-country (Sixth Freedom) traffic rights, and fought hard to preserve their access to these rights and carry Fifth Freedom (third country) traffic.
Given that these policies were created by and for US carriers, it is ironic that they are now describing the use of these traffic rights "unfair" when exercised by Gulf carriers.
In its report, QA demonstrated that the many of the market changes complained of by the Big 3 are not the product of "unfair competition" (or anything remotely related to subsidy), but are the by-product of advances in aircraft technology and demographic changes.
With ultra-long range B777 and B787 aircraft, passengers to the Middle East and India can now over-fly congested European hubs and enjoy convenient one-stop services to their destinations instead of making longer two-and three-stop journeys.
QA also demonstrated that although US carrier market share of the Indian subcontinent may have shifted over time, the market has grown and US carriers are carrying more traffic in absolute terms.
QA also disproved the claim that its services harm any US carrier, noting that it does not compete against any US carrier on any nonstop route.
In addition to benefiting American travellers, QA has supported the US aerospace industry. As of today, the airline has 162 aircraft flying to 150 destinations, of which over 40 percent are Boeing jets worth over $19bn.
Akbar Al Baker, Chief Executive, QA Group, said: "QA was a relatively unknown airline when it first launched a service to the US in 2007.
"Since then, we have built up a significant brand presence on the routes we operate to the US. Our passengers have come to know us, not through size alone, but by the signature service and quality of the product on board - and the breadth of our network.
"There has been significant demand for our services from the US, not just to the Middle East but beyond where no other carriers fly. This makes us a natural choice for consumers, and is a reflection of how globalised our world has become.
"People are travelling further than ever before and it is important that in an economy focused on open market principles, our wings remain open for business, rather than closed."
QA also demonstrated that its services are lawful and consistent with the US-Qatar Agreement, which in Article 11.2 says "neither party shall unilaterally limit the volume of traffic, frequency or regularity of service, or the aircraft type or types operated by the designated airlines of the other party'.
Despite this, the Big 3 are urging the US government to ignore its obligations by imposing a unilateral limit on QA's capacity.
Other US airlines have noted that foreign governments often try to block competition from strong US airlines by challenging "excess" capacity offered by US carriers, and cautioned the US government against deviating from a free trade policy that has worked to the overwhelming benefit of US airlines.
Al Baker said: "The US government should reject calls to 'freeze' the US-Qatar Open Skies Agreement, and recognise these allegations for what they are - a transparent attempt by the Big 3 to block air services that compete with their own."
QA also rebutted each allegation, noting that US carriers benefit from many of the same policies they have attacked. Indeed, claims of subsidy advanced by the Big 3 include items of support US carriers have received for decades, and items that have never been viewed as a form of subsidy.
In fact, many airlines (including US carriers) have acknowledged publicly that they and the Big 3 have been long-time beneficiaries of subsidies and favourable US policies and support.
While QA is used to strong competition, it expressed concern about efforts of the Big 3 to persuade the US government to refer to rules that do not apply to aviation to resolve their complaints. The application of WTO trade principles and US domestic trade laws to these complaints - rules that apply solely to trade in goods - would be unlawful.
Al Baker added: "It is puzzling to see the biggest US carriers describe QA a 'threat', given our small size and lack of direct competition with them.
"Their long-standing focus on other markets, and large (and growing) profits undercut this claim.
"The Open Skies model was developed by American carriers and has demonstrated how Open Skies paves the way for an open economy.
"We are concerned to see the Big 3 seek to change the rules of the game as soon as they see US consumers respond well to services offered by a competitor. QA is proud of its signature five-star service, brand identity and high standards we deliver to our passengers on board," Al Baker added.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.