U.S. and United Arab Emirates Reach Deal to Solve Open Skies Spat
Skift Take
The big three Gulf carriers are still very important, but because of a variety of reasons, they're no longer as scary as they were a few years ago. Still, this is good news for U.S. airlines.
Emirates and Etihad Airways will use globally accepted accounting standards for annual reports and open their books to outsiders as part of an agreement negotiated by diplomats from the United States and the United Arab Emirates that could end years of friction over allegations the two Gulf carriers abuse Open Skies agreements.
An airline industry source confirmed the agreement to Skift, saying it should be formally announced Monday. In addition to opening their books, the two Gulf carriers will also pay the "full and fair share" cost of operating from their hub airports in Dubai and Abu Dhabi, the source said. What's more, the source said, U.S. airlines understand Gulf carriers will not add more nonstop flights between the United States and Europe, though the agreement does not ban them, according to a statement from the embassy of the United Arab Emirates.
News of the agreement was first reported by the Associated Press.
The deal is similar to one reached in January between the United States and Qatar. The three largest U.S. carriers — American Airlines, United Airlines and Delta Air Lines — have long argued Emirates,
