Emirates “stands on its own feet” against US carriers

By Hannah Edensor

In more of the ‘he said, she said’ argument between the UAE carriers and the three American amigos, Emirates has jumped back in the debate once more.

Today, Emirates released its point-by-point, fact-based response to allegations of subsidy and unfair competition from by the “big three” US legacy carriers – Delta, United and American Airlines.

The full document was released to the media and public, following meetings yesterday where an Emirates delegation briefed officials from the US Departments of State, Transportation, and Commerce on the airline’s response.

The US legacy carriers launched an aggressive lobbying campaign in January, with the goals of restricting consumer choice, and stunting the growth of international flights in the US operated by Emirates and other Gulf airlines.

And in response to the US carriers’ 55-page white paper, which presented alleged evidence of Emirates receiving subsidies and cheating in the aviation game, Emirates has hit back with its own rebuttal.

Emirates Airlines’ president Sir Tim Clark said the methods employed by the US legacy carriers to discredit Emirates have been “repugnant”.

“We do not underestimate their lobbying prowess, but facts are facts,” he said.

“Unlike the Big 3’s white paper, which is riddled with inaccuracies, conjecture, and legal misinterpretations, Emirates’ response is comprehensive and based on hard facts.”

“We clearly show why the Big 3 have no grounds to ask the US government to unilaterally freeze Emirates’ operations to the USA or pursue other action under the Open Skies agreement.”

Emirates’ response presents facts that disprove each of the Big 3’s allegations: that is has received over $6 billion in subsidies, including fuel hedging subsidies; purchasing goods and services from related third parties at below-market terms; disproportionately benefiting from airport infrastructure and user fee at Dubai International airport; and having an artificial cost advantage through the structure of the UAE’s labor law.

“We were told right from the start by the government of Dubai that Emirates has to deliver profits and stand on its own feet. We had to then, and we still have to now.”

“Our global expansion is funded from our own cash flow, and debt raised in the open market through banks and financial institutions. Our success is due to superior commercial performance. To date we have paid our shareholder, the Dubai government, more than $3 billion in dividends.

“We are financially transparent, and have published fully audited accounts for over 20 years.”

“By asking the US government to take unilateral action, the Big 3 are asking the US to breach its own negotiated international obligations. This would put in jeopardy America’s Open Skies relationships with 113 other countries, and all the significant public and competition benefits that the Open Skies program has generated.”

A further argument Emirates raises is the fact that the US carriers are fundamentally hurting US consumers and the economy by restricting competition.

Emirates currently flies 84 flights each week from nine USA gateways – Boston, Chicago, Dallas/Fort Worth, Houston, Los Angeles, New York, San Francisco, Seattle, and Washington DC.

The estimated annual economic value of Emirates’ services to these airports and their surrounding regions is $2.9 billion. In addition, via interline arrangements, Emirates has provided over 775,000 feed passengers to US legacy carriers, producing $133 million in financial benefits to them over the past five years.

“The Big 3 are far from being ‘harmed’ financially by Emirates’ operations, and they are not even operating in the same markets that we are.”

“ The case put forward by Delta, United and American Airlines against Emirates is full of holes, and if their protectionist campaign were to be successful, it will not end with just the Gulf airlines.”

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american airlines delta emirates gulf the big 3 tim clark uae united usa