A look at competition between US and Middle East airlines

A look at competition between US and Middle East airlines

Emirates, Etihad Airways, and Qatar Airways have been in a bit of a political fight with the US Legacy Carriers (Delta, United, American).  The US carriers have repeatedly stated that they need more government protection from the Middle East Three because the Middle East airlines receive “billions in government subsidies” that have created an uneven playing field.  The US legacy carriers went as far as to release a white paper detailing their argument and their pleas for more government assistance. Here’s the white paper from the US legacy carriers     Back in June Emirates released a point-by-point rebuttal.  In their response they walk through each point that the US carriers have made and provided their response. It’s well-researched, well-sourced, and I think makes a pretty compelling response from the ME3.  If nothing else it sums up just how important the Middle East airlines have become in today’s airline landscape. Here’s a link to the Emirates paper. As we go into 2016 there is no doubt more airline industry consolidation on the way, but at least legacy carriers seem to be settling down on that front for the moment.  The Emirates paper is a good summary of the competitive landscape of the industry itself, so I thought it’d be good to share on this first day of the new year.   

 

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