U.S. to Hold Informal Subsidy Discussion with UAE, Qatar

The United States Department of State has begun leaking how it plans to respond to accusations by U.S. carriers that the so-called "gulf carrier" contingent of Qatar, Emirates, and Etihad are benefiting from government subsidies and obtaining an unfair competitive edge in Open Skies markets. The State Department plans to discuss the matter with representatives of Qatar and the United Arab Emirates (UAE) informally next month, but won't seek to renegotiate existing Open Skies agreements or freeze gulf carrier access to U.S. markets. The State Department reportedly met with the big three U.S. carriers and labor unions to inform them of their chosen course last Friday and was scheduled to meet with opposing interests such as FedEx, JetBlue and travel groups today. This is being spun as a victory by both sides, as the U.S. legacy carriers are encouraged to see some action taken while the remaining carriers are relieved that the government does not appear to be considering any action that would alter existing air services agreements.