Global Airlines, Is It A Fair Playing Ground?

"Open skies agreements are bilateral agreements that the U.S. Government negotiates with other countries to provide rights for airlines to offer international passengers and cargo services." (state.gov, 2016)  Basically, Open Skies agreements are designed to expand passenger and cargo operations internationally by eliminating government interference in commercial airline operations, with respect to routes, capacity, and pricing.  The U.S. has brokered Open Skies agreements with 120 foreign partners since 1992.  The U.S. is now fighting for a reorganization of the U.S.-U.A.E. Open Skies agreement stating that due to the fact that they are receiving government subsidies, there is an unfair advantage over domestic air carriers.  Two of these companies that are receiving government subsidies is Emirates and Qatar Airways.  The chief complaint that is being made by Delta, American and United is that the Gulf carriers are at an unfair advantage due to the fact that they are supported by the government.  The U.A.E. companies disagree with this argument stating that there is no unfair advantage due to the fact that American companies receive government subsidies as well, while not in the form of direct compensation, the overseas companies see the bankruptcy laws and government bailouts as a form of support that levels the playing field.  In a New york Times article states, "Supporters of Open Skies point out that Unites States carriers have received government support in the past.  Delta, American and United, for example, have been granted far-reaching antitrust immunity to set up joint ventures with rival carriers on some specific routes to Europe and Asia." (Mouawad, 2015)

With the Export-Import bank, Delta is claiming that it's overseas long-haul rivals have received large price cuts that they are not entitled to as well.  While the rival companies are not actually getting a discount on these airplanes, they are receiving a lower interest rate through the Export-Import Bank.  Delta claims that the foreign companies are taking these savings that they are receiving and using it to lower ticket costs for the customers.  Even if that is the case, the judge that presided over the case stated in his 72-page ruling that the savings was only 12 million dollars over 12 years and that is not enough to make a noticeable difference.  Honestly, I do feel that the playing field is fair.  Fair enough at least.  I think that the domestic carriers are just complaining because the competition is getting too tight.  These companies were all about the Open Skies agreements when there really wasn't any competition, now that there is, they want to start complaining and lobbying the government to help them out.  They are trying to shut down the Ex-Im bank to make them pay more for airplanes as well as cut down their access to our country.  I understand that Delta, United, and American are corporations and they only want what's good for the growth of their company, and not to sound un-American but now who's not being fair, not only are they trying to cripple the competition but they are going to damage another American company in the process, Boeing will be on the losing end of the stick if the Ex-Im Bank is disbanded.

References:

Mouawad, J. (n.d.). Open-Skies Agreements Challenged - The New York Times. Retrieved November 4, 2016, from http://www.nytimes.com/2015/02/07/business/us-airlines-challenge-open-skies-agreements.html

Open Skies Agreements. (n.d.). Retrieved November 04, 2016, from http://www.state.gov/e/eb/tra/ata/

Weisman, J., & Lipton, E. (n.d.). Boeing and Delta Spend Millions in Fight Over Export ... Retrieved November 4, 2016, from http://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html