US airlines ramp up complaints against GCC rivals

The chief executives of American Airlines and Delta Airlines met on Thursday with U.S. secretary of state John Kerry to explain their concerns over “unfair” competition from the GCC region’s top three carriers.

The American carriers claim that Emirates Airlines, Etihad Airways, and Qatar Airways have received some $42 billion in subsidies from their home governments in the Gulf over the past decade that have allowed them to boost capacity in the U.S., drive down prices, and push out competitors.

Kerry told the CEOs that relevant agencies are continuing to review the allegations, but he also stressed the importance of the U.S. Open Skies Agreement and its impact on trade, job creation, and economic growth.

Other American companies, such as JetBlue Airways Corp and the air cargo unit of FedEx Corp have sided with Gulf carriers and warned that any action on the part of the U.S. government would compromise its liberal trade policy.

The Gulf airlines have denied receiving state subsidies and attributed the declining market share of American companies to poor customer service.

The meeting was the first time that U.S. carriers were able to discuss the issue with the secretary. It followed several meetings with the undersecretary, other officials, and chief executives of Gulf carriers, according to a statement released by the U.S. State Department.