International Airlines Group Re Gulf Carrier Subsidy Claims

Published on : Friday, May 15, 2015

download (2)“The consumer benefits brought to the US travelling public by the Gulf carriers are hard to ignore. New flights have opened up an array of new destinations and direct city-pairs, added to the choice of airlines available on existing destinations, and introduced levels of customer service rarely seen in this market. Not only do Gulf carriers bring competitive service and prices, they also stimulate the market, so that much of the increase in their own passenger traffic is incremental, not taken from existing operators.

The White Paper makes much of the Gulf carrier impacts in relation to passengers travelling indirectly e.g. between India and the US, as if consumers should be denied this choice. Passengers travelling between two points on the globe do not “belong” to any particular airline or group of airlines. Airlines must compete to offer passengers what they want. The outdated concept of “ownership” of passenger traffic must be rejected by all governments.”

“IAG disputes the evidence and conclusions that unfair subsidies are being provided by the Gulf States to the Gulf airlines contained in the White Paper prepared by American, Delta and United. IAG believes the evidence and therefore the conclusions to be unreliable and wholly inappropriate as a means of informing important government policy decisions. The White Paper’s arguments should be rejected as a return to international aviation policies that protect airlines from competitors instead of fostering competition.”

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