American severs code-share ties with Etihad, Qatar

The two-year-long dispute between Middle East airlines Emirates, Etihad and Qatar Air (the ME3) and US carriers American airlines, United and Delta (the US3) has escalated again, with American Airlines ending code share agreements with Etihad and Qatar Air.
The US3 have long claimed that the ME3 receive subsidies from their governments, a claim the three Gulf carriers deny.
 
American is taking the action at a time when fellow oneworld carrier Qatar Air has signalled it intends to buy up to 10 per cent of American's shares (against the wishes of American's management).
 
Why American has waited so long to cut commercial ties with the carriers is not known.
 
However, the airline said the decision would not have a material financial impact and "is an extension of our stance against the illegal subsidies that these carriers receive from their governments".
 
American's full statement reads:
 
"In light of our ongoing dispute over the Open Skies agreements, American Airlines notified Etihad Airways and Qatar Airways on June 29 of our decision to terminate our code-share relationships. 
 
"Given the extremely strong public stance that American has taken on the ME3 issue, we have reached the conclusion that the codesharing relationships between American and these carriers no longer make sense for us. 
 
"This decision has no material financial impact on American and is an extension of our stance against the illegal subsidies that these carriers receive from their governments. 
"We are committed to doing everything we can to continue to support our team members and ensure that there is fair competition between American and the Gulf carriers."
 
It is understood the ending of code-share services does not end all commercial agreements between the carriers.
 
Qatar is staying in the oneworld alliance, so customers will still be able to book Qatar flights with American miles and earn American miles on Qatar flights. 
 
However, since Etihad is not part of oneworld, following the change passengers will not be able to earn elite-qualifying miles on Etihad flights.
 
Open Skies at risk?
 
Meanwhile, the Trump administration is said to be reviewing the bilateral agreements with the United Arab Emirates (UAE) and Qatar - as requested by the US3.
 
The US3 has been using the Partnership for Open & Fair Skies to appeal to president Donald Trump to enforce Open Skies agreements and White House staff have been discussing the issue.
 
The Partnership alleges the governments of Qatar and the UAE have given close to US$40 billion in subsidies and “other unfair benefits” to their state-owned carriers. 
 
However, the Partnership has a rival that comes with its own vested interests.
 
The US Airlines for Open Skies Coalition (not to be confused with the Partnership) is made up of four US-based passenger and cargo airlines that back the ME3.
 
“Multiple passenger and cargo airlines, including Atlas Worldwide, FedEx, Hawaiian Airlines and JetBlue Airways disagree with the claims and demands of the legacy carriers,” the Coalition says.
 
No case?
 
The Coalition also argues that there already is a dispute process in place.
 
It points to the International Air Transportation Fair Competitive Practices Act (IATFCPA) of 1974, which authorises the Department of Transportation (DoT) to act against anti-competitive, discriminatory, predatory or unjustifiable activities by a foreign government or foreign airlines against a US airline.
 
Commentators say the US3 have not tried to make an IATFCPA case - because they can't.
 
“For over 40 decades when US carriers, including American, Delta and United, had concerns about foreign competitive practices, they filed a formal IATFCPA complaint with the Department of Transportation,” one said. “Why is this any different?”

American severs code-share ties with Etihad, Qatar

The two-year-long dispute between Middle East airlines Emirates, Etihad and Qatar Air (the ME3) and US carriers American airlines, United and Delta (the US3) has escalated again, with American Airlines ending code share agreements with Etihad and Qatar Air.
The US3 have long claimed that the ME3 receive subsidies from their governments, a claim the three Gulf carriers deny.
 
American is taking the action at a time when fellow oneworld carrier Qatar Air has signalled it intends to buy up to 10 per cent of American's shares (against the wishes of American's management).
 
Why American has waited so long to cut commercial ties with the carriers is not known.
 
However, the airline said the decision would not have a material financial impact and "is an extension of our stance against the illegal subsidies that these carriers receive from their governments".
 
American's full statement reads:
 
"In light of our ongoing dispute over the Open Skies agreements, American Airlines notified Etihad Airways and Qatar Airways on June 29 of our decision to terminate our code-share relationships. 
 
"Given the extremely strong public stance that American has taken on the ME3 issue, we have reached the conclusion that the codesharing relationships between American and these carriers no longer make sense for us. 
 
"This decision has no material financial impact on American and is an extension of our stance against the illegal subsidies that these carriers receive from their governments. 
"We are committed to doing everything we can to continue to support our team members and ensure that there is fair competition between American and the Gulf carriers."
 
It is understood the ending of code-share services does not end all commercial agreements between the carriers.
 
Qatar is staying in the oneworld alliance, so customers will still be able to book Qatar flights with American miles and earn American miles on Qatar flights. 
 
However, since Etihad is not part of oneworld, following the change passengers will not be able to earn elite-qualifying miles on Etihad flights.
 
Open Skies at risk?
 
Meanwhile, the Trump administration is said to be reviewing the bilateral agreements with the United Arab Emirates (UAE) and Qatar - as requested by the US3.
 
The US3 has been using the Partnership for Open & Fair Skies to appeal to president Donald Trump to enforce Open Skies agreements and White House staff have been discussing the issue.
 
The Partnership alleges the governments of Qatar and the UAE have given close to US$40 billion in subsidies and “other unfair benefits” to their state-owned carriers. 
 
However, the Partnership has a rival that comes with its own vested interests.
 
The US Airlines for Open Skies Coalition (not to be confused with the Partnership) is made up of four US-based passenger and cargo airlines that back the ME3.
 
“Multiple passenger and cargo airlines, including Atlas Worldwide, FedEx, Hawaiian Airlines and JetBlue Airways disagree with the claims and demands of the legacy carriers,” the Coalition says.
 
No case?
 
The Coalition also argues that there already is a dispute process in place.
 
It points to the International Air Transportation Fair Competitive Practices Act (IATFCPA) of 1974, which authorises the Department of Transportation (DoT) to act against anti-competitive, discriminatory, predatory or unjustifiable activities by a foreign government or foreign airlines against a US airline.
 
Commentators say the US3 have not tried to make an IATFCPA case - because they can't.
 
“For over 40 decades when US carriers, including American, Delta and United, had concerns about foreign competitive practices, they filed a formal IATFCPA complaint with the Department of Transportation,” one said. “Why is this any different?”