Airline subsidies? Show us proof, says Al Mansouri

US accusations that Gulf carriers receive unfair funding unacceptable, says Al Mansouri

Abu Dhabi — The UAE has asked US airlines to present information and data they have on the so-called subsidy enjoyed by Gulf air carriers or stop accusations, which are unacceptable.

Sultan bin Saeed Al Mansouri addressing the media after the UAE-Germany Joint Session on economic and Technical Cooperation in Abu Dhabi on Monday. — KT photo 

In its first official reaction to allegations levelled by the three US airlines that the fast-growing Emirates, Etihad Airways and Qatar Airways have benefited from government subsidies amounting to $42 billion, UAE Minister of Economy Sultan bin Saeed Al Mansouri asked the US airlines to present their reports in support of their claims.

“Please give us these reports you have on subsidies and then we can provide answers... You can’t throw accusations without proof,” Al Mansouri told reporters at a media briefing with his visiting German counterpart Sigmer Gabriel, on the sidelines of the 10th session of the UAE-Germany Joint Commission on Economic and Technical Cooperation.

Al Mansouri said it is unfortunate that some of the CEOs of the airlines have been exchanging heated arguments, which is not a healthy sign for the relations between the airlines.

Expect a ‘very robust response’ Emirates president Tim Clark, dead serious to shoot down the allegations from US airlines, plans to travel to Washington this month to present his side of the case to administration officials. He also called the US carriers’ allegations ‘bluster and flimflam’.

The three airlines from the UAE and Qatar have refuted charges that they received subsidies.

Instead, US-based airlines benefited from state support in the aftermath of the 9/11 attacks when travel business collapsed globally, they argue.

“The ‘subsidy’ word is misused in many situations. Unless there’s proof and you put it there, you should not use the word subsidy,” Al Mansouri said.

The minister said that the Gulf airlines have supported the economies of Europe and US in a big way.

“We shouldn’t underestimate the value of the aviation industry in terms of its contribution to nations — Germany, the US, Europe,” Al Mansouri said, as some of the biggest purchases of aircrafts benefited those nations.

Also, from the operations of these airlines, thousands of jobs have been provided in those countries, he added, a part from taxes and other levies.

Supporting the UAE minister’s views, Gabriel said: “For me it’s normal if we have a result of research done by Americans then, of course, you have to prove it and discuss it in existing framework.”

Emirates president Tim Clark denied receiving subsidies or bailouts.

“We are very interested to see how the figure of ‘$40 billion in government subsidies and benefits’ was calculated,” Clark said in a recent statement. His airline has “always embraced and advocated fair and open competition”. Clark called the US airlines’ allegations “bluster and flimflam” in an interview with Bloomberg News.

“They must be prepared for a very robust response from us,” said Clark, who plans to travel to Washington this month to present his side of the case to administration officials.

Emirates is now the world’s largest airline by international capacity, as well as the largest operator of Boeing 777s and Airbus A380s. By that same capacity measure, Qatar jumped to 10th last year, from 90th in 1998; Etihad is now 13th, according to the US carriers’ data.

— haseeb@khaleejtimes.com