Sunday, November 6, 2016

Global Airlines

The Open Skies Agreement can be accredited with expanding international passenger and cargo flights to and from the United States. This promotes more travel and trade, productivity, creates many job opportunities and economic growth. These agreements eliminate government interference in commercial air decisions about routes, capacity and pricing allowing the carriers to provide more affordable, convenient and efficient service. (Open Skies, n.d.) The United States and The United Arab Emirates have an open skies agreement however are in a bit of a discrepancy. The three biggest US carriers, American, United and Delta Air Lines, claim that the Gulf airlines, Emirates, Etihad Airways and Qatar Airways, were being heavily subsidized by their host governments creating an unfair advantage,  This was countered by a report from  Etihad showing that the three US carriers have received more than $70 billion in government a court sanctioned benefits over the past 15 years. (McCauley, 2016) While some US carriers are in support of the Big Three's claims, others such as Alaska Airlines, Hawaiian Airlines and JetBlue Airways support the Gulf carriers. 

The Export-Import Bank is "the official export credit agency of the United States." Their mission is to support American jobs by facilitating the export of U.S. goods and services. They fill the gap for American businesses by equipping lenders with the financials necessary to compete for global sales. Thus "increasing the playing field for US goods and services against the overseas markets, so American companies can create more good-paying American jobs." (About Us, n.d.)
So in terms of Boeing, yes, the foreign carriers are making purchases that differ from what the US carriers are offered. All that being said, I feel that the global playing field is overall fair. They were obviously all for it in the beginning and it wasn't until the competition got heated that they started throwing a fit. In the end, the Gulf carriers are still helping out our economy by purchasing aircraft through Boeing.






About Us | EXIM.gov. (n.d.). Retrieved November 6, 2016, from http://www.exim.gov/about/

 Open Skies Agreements. (n.d.). Retrieved November 06, 2016, from http://www.state.gov/e/eb/tra/ata/ 

McCauley, A. (2016, July 27). Victory for Gulf airlines as US government ends Open Skies row with no further action | The National. Retrieved November 06, 2016, from http://www.thenational.ae/business/aviation/victory-for-gulf-airlines-as-us-government-ends-open-skies-row-with-no-further-action


2 comments:

  1. I agree with you that the playing field is as level as it can be. The foreign carriers deals only differ on interest rates. Is the same as if two people buying a car. They both get it for the same price but get different interest rates or even different length of loans.

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  2. I agree as as well that the playing field is as level as it can be. From Delta's objections I think that it's possible they are worried that it won't continue to be fair. I have to say I'm biased that we should be protecting American companies as much as possible.

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