Are Gulf State Airlines Taking Unfair Advantage of Open Skies Agreements
Since 1992, Open Skies agreementsbilateral agreements designed to eliminate government involvement in airline decisionmaking about routes, capacity, and pricing in international marketshave vastly expanded international flights to and from the United States, promoting increased travel and trade, enhancing productivity, and spurring highquality job opportunities and economic growth. While most of these bilateral agreements have increased competition and benefited U. S. airlines, employees, and consumers, in a few cases, foreign governments have pursued industrial polices meant to increase market share for their national airlines. In particular, major U. S. airlines have argued that the governments of the UAE and Qatar, in contravention of their obligations under Open Skies agreements, have provided billions of dollars in subsidies and other benefits to their stateowned air carriers over the past decade. This subsidized support has helped Gulf airlines expand routes into the United States, distorting t
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