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A6 U.S. NEWS
Saturday 14 april 2018

AP sources: U.S., Emirates near deal to solve air subsidy spat

By JOSH LEDERMAN,
Associated Press
WASHINGTON (AP) — The
United States and the
United Arab Emirates are
nearing a deal to resolve
a years-old spat over al-
leged government subsi-
dies to Emirati airlines that
the major U.S. airlines claim
have tilted the competition
against them, four individu-
als familiar with the nego-
tiations told The Associated
Press.
Under the budding deal,
Dubai-based Emirates and
Abu Dhabi-based Etihad
Airways would agree to
voluntarily open up their
accounting books, long
accused by the U.S. airlines
of obscuring billions in sub-
sidies. The airlines will also
assert to the United States
that they currently have
no plans to add additional
flights to the United States In this May 4, 2014 file photo, an Etihad Airways plane prepares to land at the Abu Dhabi airport in the United Arab Emirates.
from Europe or other desti- Associated Press
nations outside of the Unit- tion to the Summit of the have long denied receiv- so-called “Fifth Freedoms” pick up more passengers,
ed Arab Emirates. Americas. ing unfair government sub- flights — routes that go then fly on to New York.
The deal will closely mir- The State Department said sidies, as has Doha-based from third countries, such as The U.S. airlines had sought
ror one reached in Janu- “discussions are ongoing” Qatar Airways. But the U.S. those in Europe, directly to a “freeze” — a binding
ary between the U.S. and but declined to confirm airlines claim that the Gulf the United States. Emirates commitment that they
Qatar, the individuals said. the details of the emerging airlines have managed to Airline currently offers “Fifth wouldn’t offer any more
Despite years of rancor- deal, adding that there was mask payments to their air- Freedom” flights in which Fifth Freedom flights — from
ous debate, that deal was “nothing to report at this lines through creative ac- passengers can fly from the Gulf airlines, but ap-
broadly embraced both by time.” The White House did counting, such as catering New York-area airports to pear to have fallen short.
the Qataris and by the big not respond to a request contracts arranged at far Milan, Italy or Athens with- Instead, they are likely to
U.S. airlines, making it an at- for comment, and the Emi- below market rates. out ever setting foot in the receive a side-letter or simi-
tractive model to replicate. rati Embassy in Washington It was unclear precisely UAE. lar document that states
The individuals weren’t au- had no comment. what transparency mea- The U.S. carriers claim those that as of now, there are
thorized to discuss the deal The three major U.S. carriers sures the Emiratis will agree flights offered by flag car- no plans to offer any more
ahead of its completion — Delta Air Lines, American to in the deal. But in the riers of the UAE undercut such flights, at least partial-
and requested anonymity. Airlines and United Airlines Qatari arrangement, Qatar the flights they offer on the ly addressing the U.S. con-
Although the deal has yet — have spent huge sums agreed within one year to same routes. cerns. The side document
to be finalized and for- over the last three years releasing audited financial But the Gulf airlines have is still being drafted, several
mally adopted, both sides pressing the Obama ad- statements for Qatar Air- pointed out that some of individuals briefed on the
have agreed to the broad ministration and Trump ad- lines “in accordance with the U.S. carriers also offer discussions said.
outlines of the deal, the ministration for tough ac- internationally-recognized flights that never set foot in Though on the same side
individuals said. It was un- tion, and have been eager accounting standards.” their home country, such of the airline dispute, Qatar
clear exactly when it would to show a win on the issue. Within two years, Qatar as Delta’s direct flight from and the UAE oppose each
be completed. The State The airlines have hoped Airways is to disclose any Manila, Philippines, to To- other in a bitter, unrelated
Department official over- that if they have more vis- transactions with other kyo. standoff. Last year, the
seeing the issue, Assistant ibility into the finances of state-owned entities, such Under the scenario U.S. air- UAE, Saudi Arabia and oth-
Secretary of State for Eco- the state-owned Emirati as caterers or other com- lines fear, Emirates or Etihad er Gulf nations blockaded
nomic and Business Affairs airlines, the Emiratis will no panies that support airline could expand their offer- Qatar after accusing it of
Manisha Singh, is in Peru this longer be able to get away operations. ings by adding flights from supporting extremism and
week as part of Vice Presi- with unfair subsidies. The other major concern of Abu Dhabi or Dubai to, say, fomenting dissent through-
dent Mike Pence’s delega- Both of the Emirati airlines the U.S. airlines regards start Paris or London, stop to out the region.q