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Post by nowayhaha on Mar 19, 2015 17:26:06 GMT 3
www.openandfairskies.com/Fueled by massive government subsidies, state-owned Qatar Airways, Etihad Airways and Emirates are aiming to dominate global aviation by exploiting Open Skies policy These three airlines, wholly owned by their governments, are using unprecedented subsidies to exploit their open and unfettered access to the U.S. market. This threatens our U.S. airline industry, airline jobs and the U.S. economy. The Three Airlines Are Violating U.S. Open Skies Policy Over the last decade alone, Qatar, Etihad, and Emirates collectively have received more than $42 billion in subsidies and other unfair benefits from the governments of Qatar and the United Arab Emirates, according to a recent investigation. Those subsidies are in violation of Open Skies policy and put thousands of U.S. airline jobs at risk. Massive Subsidies Undermine Fair Competition We welcome robust competition on a level playing field. But with these state-owned airlines taking advantage of unprecedented subsidies, the playing field is decidedly not level.  Subsidized Expansion by Qatar, Etihad and Emirates Threatens U.S. Airline Jobs The three carriers’ routes to the U.S. have not meaningfully increased passenger traffic; they only serve to displace U.S. airline market share and shift good U.S. aviation jobs overseas. In fact, every lost international roundtrip route by U.S. carriers because of this subsidized competition equals a net loss of more than 800 U.S. jobs. America Deserves Fair Competition and Open Skies The U.S. government must review the subsidies and ensure airline competition is fair. We strongly support Open Skies and deserve to fly in fair skies.
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Post by nowayhaha on Mar 19, 2015 17:30:50 GMT 3
www.openandfairskies.com/subsidies/The nations of Qatar and the United Arab Emirates (UAE) are funneling billions of dollars in government subsidies to their state-owned airlines, distorting the international aviation market and undermining fair competition. Massive Subsidies Are Distorting the International Aviation Market Since 2004, the governments of Qatar and the UAE have provided $42 billion in subsidies and other unfair benefits to Qatar Airways, Etihad Airways and Emirates This subsidized support includes interest-free government “loans” with no repayment obligation, government grants and capital injections, free land, airport fee exemptions and more. These subsidies are a clear violation of Open Skies policy, which is based on the principle of fair competition in a marketplace free of government distortion. $42 billion in subsidies and unfair benefits is the very definition of government distortion  Qatar and the UAE Are Exploiting the Open Skies Framework to Build Their National Economies The systematic subsidization of Qatar, Etihad and Emirates is part of a closely managed effort by the governments of Qatar and the UAE to direct the flow of international traffic through their own hubs and grow their economies. Qatar, Etihad and Emirates operate as arms of the state carrying out the will of their respective governments – not as independent companies. This would be like the CEO of a major U.S. airline also running the Federal Aviation Administration while being the head of major U.S. airports, such as LAX, JFK and DFW. While that situation may sound absurd, it is exactly what is happening in Dubai with Emirates.  Learn more about Dubai, Inc. www.openandfairskies.com/wp-content/themes/custom/media/Dubai-Inc.pdfThese Unfair Practices Put the U.S. Economy and U.S. Jobs at Risk The massive government subsidies provided to Qatar, Etihad and Emirates are not only a clear violation of Open Skies policy, but they also pose a direct threat to the U.S. airline industry and thousands of American jobs. These state-owned carriers are using their huge, artificial advantage to rapidly expand their fleets and take over international routes, unfairly capturing U.S. airline market share and shifting U.S. aviation jobs overseas. Comparison of U.S. jobs (airline direct, indirect and induced) per widebody Daily Roundtrip Frequency to/from the United States 
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Post by nowayhaha on Mar 19, 2015 17:32:57 GMT 3
Executive Summary www.openandfairskies.com/wp-content/themes/custom/media/Executive-Summary.pdfRestoring Open Skies Restoring Open Skies: The Need to Address Subsidized Competition from State-Owned Airlines in Qatar and the UAE is a 55-page white paper commissioned by American Airlines, Delta Air Lines and United Airlines and presented to the U.S. government. The document proves that multi-billion dollar subsidies are provided by the governments of Qatar and the United Arab Emirates to Qatar Airways, Etihad Airways and Emirates Airline in violation of Open Skies policy. Evidence gathered during a global, two-year investigation – including newly obtained financial statements and other records – shows that those three state-owned carriers have received $42 billion in quantifiable subsidies and other unfair benefits from their respective governments in the last decade alone, including: Qatar Airways $8.4 billion in government “loans” and “shareholder advances” with no repayment obligation $6.8 billion in subsidies from government loan guarantees $616 million in airport fee exemptions and rebates $452 million in free land Etihad Airways $6.6 billion in government “loans” with no repayment obligation $6.3 billion in government capital injections $3.5 billion in additional undisclosed government funding in 2014 $751 million in government grants $501 million in airport fee exemptions Emirates Unquantified subsidies from purchases of more than $11 billion in goods and services from other government-owned companies at not-at-arm’s-length prices $2.4 billion from government assumption of fuel hedging losses $2.3 billion from subsidized airport infrastructure These massive subsidies have enabled Qatar, Etihad and Emirates to rapidly expand their fleets and international routes, distorting the commercial aviation marketplace and diverting global traffic to their hubs. In fact, these carriers are expected to grow capacity at more than three times the growth rate in global GDP (a key indicator for the anticipated growth in global demand) between 2012-2020. Qatar, Etihad and Emirates are not meaningfully stimulating new passenger demand on their routes. The only way these airlines can grow at such a rapid pace is by using the huge, artificial advantage created by government subsidies to capture U.S. airline market share, shifting American aviation jobs overseas and negatively impacting the U.S. economy. Every international roundtrip flight foregone or lost by U.S. airlines results in a net loss of more than 800 U.S. jobs. |
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Post by nowayhaha on Mar 19, 2015 17:42:34 GMT 3
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Post by nowayhaha on Mar 19, 2015 17:48:35 GMT 3
What People Are Saying about Subsidies to State-Owned Gulf Airlines www.openandfairskies.com/what-people-are-saying-about-subsidies-to-state-owned-gulf-airlines/- U.S. House Committee on Transportation and Infrastructure Chairman Bill Shuster, 3/17/15 - Carsten Spohr, Lufthansa CEO, 3/17/15 - Carsten Spohr, Lufthansa CEO, 3/17/15 - Editorial from The Detroit News, 3/14/15 - Cong. Peter DeFazio, Ranking Member of the House Committee on Transportation and Infrastructure, 3/9/15 - The Economist, Gulliver Business Travel, 3/6/15 - Capt. Keith Wilson, Allied Pilots Association, 3/5/15 - Laura Glading, Association of Professional Flight Attendants, 3/5/15 - Capt. Tim Canoll, Air Line Pilots Association, 3/5/15 - Capt. David Bourne, Airline Division Director, International Brotherhood of Teamsters, 3/5/15 - Ben Schlappig, One Mile at a Time, 2/18/15 |
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Post by nowayhaha on Mar 19, 2015 17:50:38 GMT 3
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Post by b6k on Mar 24, 2015 4:46:30 GMT 3
Forget about the Arab airlines. If a government can afford to subsidize its national carrier there's little one can do to stop that however obscene the amounts may sound to us. That said, Titus Naikuni may find himself facing allegations of mismanagement in the future much like Evans Kidero is facing about his stint at Mumias today. These "blue chip" CEO's aren't all they're cut out to be...
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Post by nowayhaha on Mar 24, 2015 18:15:32 GMT 3
Forget about the Arab airlines. If a government can afford to subsidize its national carrier there's little one can do to stop that however obscene the amounts may sound to us. That said, Titus Naikuni may find himself facing allegations of mismanagement in the future much like Evans Kidero is facing about his stint at Mumias today. These "blue chip" CEO's aren't all they're cut out to be... Not really B6K.....take the example of Cyprus Airways Cyprus Airways shuts down after order to repay state aid www.bbc.com/news/business-30754232Cyprus' national carrier has ceased operations after an EU decision it must repay over 65m euros (£50m) in illegal state aid. The EU Commission said the Cypriot government had breached rules on support for struggling companies. Cyprus Airways has repeatedly received aid between 2007 and 2013. The government, which owns 93% of Cyprus Airways, had searched unsuccessfully for outside investors. "The company has ceased being a viable entity, and cannot continue to operate," said finance minister Harris Georgiades. He said there would be alternative arrangements covering Cyprus Airways flights from Saturday. 'Not viable' The Commission undertook an in-depth investigation after the government in Nicosia approved repeated state aid packages to the airline. Publishing the investigation's results, the Commission was highly critical of Cyprus Airways' restructuring plans. It said they were based on "unrealistic assumptions", failed to address the cause of the airline's difficulties and were taking longer to implement than EU rules permitted. Under EU rules, struggling companies can be given aid under what the Commission terms the "one time, last time" principle. Governments may grant a one-off tranche of aid to support a restructuring process once within a period of 10 years. The rule is intended to prevent companies becoming reliant on government support and gaining unfair advantage over rivals. "Cyprus Airways has received large quantities of public money since 2007 but was unable to restructure and become viable without continued state support... injecting additional public money would only have prolonged the struggle without achieving a turn-around," EU Competition Commissioner Margrethe Vestager said in a statement. |
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