U.S. Carriers are Being Forced Out of Middle Eastern Markets by Unfair Gulf Carrier Subsidies

More than $42 billion in subsidies have flooded the market, making it impossible for the U.S. carriers to compete

Washington, D.C. (October 28, 2015) – Today, Delta announced the termination of its service between Atlanta and Dubai effective February 11, 2016. The company said in a statement that the “cancellation of nonstop service between Atlanta and Dubai comes amid overcapacity on U.S. routes to the Middle East operated by government-owned and subsidized airlines. As a result, Delta has been forced to redeploy the 777 aircraft on this route to a market that’s not distorted by government subsidization of state-owned airlines.”

In response to Delta’s announcement, Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies, released the following statement:

“The U.S. government can no longer ignore the clear harm that Gulf carrier subsidies are inflicting on American carriers and the men and women who work in our aviation industry. The flood of subsidized capacity pouring into these routes has swamped any chance of fair competition, forcing U.S. carriers to cut services that American travelers rely on. If our government allows the brazen subsidization of Emirates, Qatar and Etihad airlines to continue, U.S. carriers will be forced out of more routes, diminishing service and harming a vital national industry. At the same time, the spread of these subsidized carriers has closed off new markets to U.S. airlines, limiting the potential for future growth and job creation. The harm to the U.S. economy is real and it is ongoing; the Obama administration must move immediately to request consultations with the United Arab Emirates and Qatar because American jobs are at stake.”