Page 12 - AAA MAY - JUNE 2015 Online Magazine
P. 12
FEATURE INDUSTRY
Survival of the Fittest
The reality is there is no such thing as a level playing field in aviation
By geoffrey Thomas
THE CURRENT HEATED DEBATE BETWEEN For instance the US airlines have an
key US airlines and Middle East carriers enormous advantage of a massive and
over alleged subsidies is more about the wealthy home market locked in with
fact that most US airlines are struggling frequent flyer programs, whereas the
to compete in the international arena Middle East countries of Qatar and the
ABOvE: Every US airline despite the fact their highly protected UAE have tiny populations.
(eight) in this production home market is the world’s richest. And countries across the globe have helped
line pictures of the Douglas
DC-9 in 1967 has entered United Airlines, American Airlines and their airlines since aviation first started.
Chapter 11 or was force to Delta Airlines have asserted that Middle A confidential Congressional Research
merge since de-regulation East airlines Qatar, Etihad and Emirates Service report RL30050 obtained through
in 1979 have received subsidies – mostly in the WikiaLeaks Document Release shows that
form of interest free loans – of $40 billion the US government has supported the US
OPPOSITE LEFT: The over the last ten years and are urging the airline industry to the tune of $155 billion in the
last major passenger Obama Government to curtail the open 80 years from 1918 to 1998. And so it should
innovation introduced by skies agreements with Qatar and the UAE. have as most of the support was for aviation
US legacy airlines was However the Middle-East airline have hit infrastructure and to establish routes.
economy class in 1952
back saying the US airlines have received And after the tragedy of 911 the US
OPPOSITE RIghT: When even greater subsidies and debt relief. Government poured tens of billions more
the Boeing 767 rolled out The reality is there is no such thing as a directly into airlines as many faced collapse.
75 per cent of the orders level playing field in aviation – never has Governments across the globe either
were for US airlines been – never will be. directly or indirectly support aviation.
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