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Qatar and U.S. sign civil aviation agreement
February 2nd 2018
Qatar and the U.S. this week signed an agreement aimed at creating a level playing field between Qatar Airways and U.S. legacy carriers. Read More »
The agreement, brokered by U.S. Secretary of State, Rex Tillerson, asks the Doha-based carrier to use international accounting and auditing standards, disclose its financial results going forward and commit to not adding fifth-freedom flights to the U.S. from countries other than Qatar.
“These exchanges address concerns important to U.S. aviation industry stakeholders and strengthen our economic cooperation,” Tillerson said. He added the outcome achieved would “ensure a level playing field in the global aviation market”.
The deal is non-binding and it does not alter the existing Open Skies agreement between the U.S. and Qatar. While the U.S. appeared to believe it had reached a landmark deal, the Qataris used rather vague language in commenting about the agreement. For instance, they did not say they would not launch fifth-freedom flights to the U.S., but instead said they had “no current plans” to do so.
The Qataris have shown goodwill in the negotiations that could go a long way with its oneworld alliance partner, American Airlines. Emirates Airline and Etihad Airways operate far more flights to the U.S. than Qatar Airways and unlike Qatar Airways, Emirates operates fifth-freedom flights to the U.S. via Greece and Italy.
Qatar and the UAE continue to be in a diplomatic standoff with no end in sight to their stalemate. It is therefore not sure the UAE will follow in Qatar’s footsteps.
American Airlines, Delta Air Lines and United Airlines also have persisted in their claims that the big three Gulf carriers have benefitted from at least US$42 billion in government subsidies as they expanded.
“Today’s landmark action will help create a level and fair playing field for American Airlines and other US carriers,” said American Airlines chairman and CEO, Doug Parker. “The administration’s actions today thoughtfully address the illegal subsidies received by Qatar Airways,” he added.
“We applaud this agreement and thank the administration for effectively representing the interests of the American aviation industry,” said United CEO, Oscar Munoz.
