Etihad to file response with Washington on subsidy scandal
United Arab Emirates (UAE)-based Etihad Airways is set to officially answer questions from Washington by the end of May over unfair business competition with US airlines, in an unprecedented move.
Etihad Airways made the announcement on Sunday, as US airlines continue to pressure Washington to cancel the Open Skies pacts it signed with the UAE and Qatar back in 2009.
Last year, Etihad, along with two other Arab air carriers Emirates and Qatar Airways, were accused by US airlines Delta, United and American of receiving about $42 billion in financial support in the form of subsidies from their governments to fund their expansion.
Etihad is the first carrier supposed to reply to legal inquiries from the US government. Qatar Airways and Emirates have implied that they would answer questions to such complaints soon.
US airlines believe that subsidies provided by oil-rich Persian Gulf countries were directly impacting their businesses in their home countries.
The US government opened an investigation in response to the allegations. Washington in March said that the deadline for answering its inquiries was May.
US airlines Delta, United and American Airlines said that Arab governments were forcing them to lose valuable market shares.
Arab airliners claimed that such allegations were false.
“The claims made by the three US carriers that Etihad Airways and other Gulf carriers are damaging their business and taking ’their’ passengers, are not only false, but also arrogant,” said Kevin Knight, chief strategy and planning officer, Etihad Airways, to local business media in Abu Dhabi.
Experts say if the allegations prove to be true, Arab airlines will incur heavy losses.
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