US Government Agencies to Review Gulf Airline Subsidy Claims

Major American airlines stated that the state-owned Persian Gulf carriers are improperly subsidized by their respective government. Now, the United States government agencies have decided to conduct a review the allegations made by the airlines. According to reports, the agencies have been seeking comments from parties that are interested by the end of next month.

In a joint statement, the departments of State, Commerce and Transportation said that the concern raised by airlines has been taken seriously by the United States government. The formal review process has been expected to start by the end of May, as per the reports.

According to United States carriers and unions, airline companies like Emirates, Etihad Airways and Qatar Airways have been benefited from over USD$40 billion in state subsidies that allowed the airline companies to cut down ticket prices. The move by those airlines companies have started pushing the United States airline companies out of key markers, as per the US carriers and unions.

They have called on the United States government to interfere in the matter and have discussion with those airlines' home governments. According to the reports, companies like American, Delta and United have submitted the claims about subsidies. While talking on the issue, the Gulf carriers denied the subsidy allegations and stated that inferior service of United States airlines has caused them to lose market share.

While applauding the US government's transparency, an airline said in a statement, "Etihad Airways is committed to setting the record straight regarding these unsubstantiated allegations. We hope that no one will pre-empt this process or prejudge its outcome". A spokeswoman for the US airline and unions' group said that it is good that the government has decided to take next step to examine the issue. The process is an opportunity for more transparency, as per the spokeswoman.