Articles tagged “gulf carriers”

Remember when the Trump administration suggested in May it had solved the ongoing dispute between U.S. and Gulf carriers? Hah. American Airlines CEO Doug Parker is already complaining one competitor is ignoring the spirit of the agreement.

It's funny. Fifth Freedom flights — those are routes where an airline flies from a place other than its home country — account for roughly 1 percent of Emirates' capacity, according to the airline's president. And Emirates has only two such routes to the United States. But it's a hot topic among airline insiders, and it doesn't sound like that will change.

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.

We're not surprised American Airlines is not interested in blinged-out first and business class cabins. But we're still slightly puzzled at the U.S. carriers' anger toward the Gulf airlines. Yes, Emirates, Etihad and Qatar receive government assistance, but so do a lot of airlines.

While there is no specific mention of the big Gulf airlines, they would likely be a target for any new measure designed to rein in supposed anti-competitive practices. European airlines, alongside those in the U.S., have long said the likes of Emirates and Etihad have an unfair advantage. European airlines surely welcome any new rule that attempts to level the playing field.

The fact that Grayling’s comments came on the same day as a terrorist attack on London underlines the threat posed. Nevertheless, so many questions remain unanswered: why are the destinations covered different to the U.S.? What about those traveling with hand luggage only? What about insurance? For the moment, there is plenty of confusion.

Turkish Airlines has had a terrible month, but the airline could bounce back faster than some passengers might expect.

Delta, United, and American wanted the U.S. State Department to take unprecedented action against Emirates, Etihad Airways, and Qatar Airways. But the government didn't opt for a brash approach. This may well be the beginning of the end of the complaints.

Etihad has had the advantage of a clean slate to work on and--some argue--a generous budget to work with. But, when we look back at airline history, other airlines also had these advantages at some point or other. What makes Etihad unique is how much it has done with those resources and opportunities to position and differentiate its brand--and how quickly it has accomplished these aims.

The process of privatization in aviation, including that of airport infrastructure, has been a difficult one over the past two decades, but as it continues it promises to bring greater efficiencies and competitive advantages.