Yesterday I wrote a post about how after three years and millions of dollars of lobbying by US airlines, the US and Qatar finally agreed to a resolution regarding their Open Skies disagreement.
Continue reading: Qatar Airways’ Victory, And How US Airlines Are Twisting It
Share your questions, experiences, and thoughts below.
Listen folks, US airlines get plenty of subsidies from our government. Here's an excerpt from a USA Today article:
"Consider the Essential Air Service program, which currently provides subsidies for airlines serving 163 rural communities nationwide. There’s also the Fly America Act, which since 1974 has required federal agencies to use U.S. air carriers to transport passengers and cargo when such travel is funded by the government.
And then there’s the bailout many have forgotten. In the aftermath of 9/11 and the grounding of commercial aircraft, Congress and President Bush put forth the Air Transportation Safety and Stabilization Act. Washington so quickly assisted the airlines that virtually nothing was asked in return, not even the quid pro quo of implementing the many passenger rights proposals put forth during that time."
There's a whole lot more in the original article. Click here for the read. https://www.usatoday.com/story/travel/columnist/mcgee/2015/09/02/how-much-do-taxpayers-support-airlines/71568226/
US airlines are now rolling in the dough. They just don't want to dilute that fact by lowering ticket prices. If Qatar, or Emirates, or Etihad had a lower priced ticket to a desired destination (not a real option since I am not going to fly to Europe via a Persian Gulf hub) I would buy that ticket and, at the same time, enjoy the cleaner planes, better amenities, and better service.
Lucky - do you think this could possibly lead to more cooperation between QR and one of the US3? QR is keen to invest in US and if I read correctly between the lines, this could mean that the door is now open for a significant transaction (like an investment in AA) without the public hostility resulting from this Open Skies issue.
Also, it seems this is a departure from perhaps a coordinated stance by the ME3. Not surprising given the political situation between Qatar and UAE.
I'm wondering if this'll be mentioned in the SotU address tonight. I mean, if there ever was an administration that loved outright lying about fruitless victories, it's this one.
Woah, I though this piece was written by the same guy who tried making himself look better by writing a bitchy commentary on Chris Christie.
Ben, you're way better than this. Don't let the kweens get you down on their level.
The US3 have probably come to realize that this campaign wasn’t going anywhere, and this was an opportunity to end it without looking like they were just giving up(and honestly most non-avgeeks will(if at all) just hear the US airlines twisted version of it.
@ A -- I don't see expanded cooperating between Qatar and the "big three" US. On principle the US carriers are still going to keep playing the same card in order to save face.
QR have a vested interest here. They're a member of OneWorld and want feed from AA, which has been made more difficult with announcements by AA with regard to arrangements with EY and QR.
This may very well clear the way for AA and QR to resume codeshare services.
Hmm, I'm wondering if there's more to this than you realize. At least, based on the quote you included from the Partnership For Fair & Open Skies, it says that QR has committed to "... applying commercial terms to all transactions."
"Commercial terms" is a pretty important phrase. I haven't followed all the details of this subsidization claim, but in theory, you could argue that the state is subsidizing the airline if, for example, the state oil company sells jet fuel to the airline at a below-market price. Committing, however, to apply "commercial" terms would imply that the airline will have to start paying market prices, which would eliminate any subsidy. The same would be true if you have to pay market prices for catering, airport fees, etc.
The devil is in the details, but if QR really is agreeing to pay market prices for all transactions with third parties, then it could indeed be true that most of the airline's subsidies will disappear.
so it's ok if American airlines get subsidies, but not others? It's kinda like imposing over 200% tax on Bombardier, because Boeing isn't making enough money. America is run by a bunch of fucktards.
It’s 2:30am in Doha and I’m sitting in a quiet cubicle in the Qatar Business Lounge waiting for my connection to São Paulo enjoying every bit of those government subsidies. Doug Parker is never going to have a product or sadly employees that will come close to what Qatar offers.
I flew QR to Doha on an AA codeshare (Fly America Act) and of course, paid about $1,000 more for the ticket than had I bought the same routing from QR -- nice subsidy. The Fly America Act specifically prohibits a federal govt contractor (me) from selecting the lowest cost option - we MUST purchase the higher cost codeshare ticket - almost without exception. Point: the Fly Amer Act not only forces us to fly on US carriers (except for Europe), we also must pay MORE MONEY for the ticket! A double subsidy actually. And contractors cannot use the USG city pair fares !
AA announced it's ending its codeshare agreement with QR in March. My question, Lucky, is will they reconsider, since it's a profit center for which they do no work?
I'm with AdamR on this! No doubt he will throw his shoulder out patting himself on the back for this great "victory"! If not tonight, before the week is out.
Qatar should release financial statements when Trump releases his tax returns. Fair trade? LOL
Ermm didn’t qatar release documents saying they made a profit last time round?
Obviously, and as Ben said it’s fluff, this was obv some agreement where Qatar probably payed the US3 to end this ridiculous back and forth. Lord knows Qatar can afford pay. They probably figured, if you can’t beat ‘em, join ‘em.
@Lucky, what software do you use to produce these cartoon jpgs? Just curious as they look terrific, especially the namaste one from your air India post.
@Bill they're BITMOJIS, not a special "software" lol.
They're mainly used to Snapchat or iMessage.
You can download on your iPhone the BITMOJI app and create your own!
what a joke. the US airlines are crazy. They are milking people left and right and then complain that they cant make more money because someone else has a better product for less money!
They CAN compete but they have the mentality that they WONT, because they know they would need a completely different culture than what most of their staff has.
The US3 have some good products (UA's/AA's 77Ws) and Delta has some good products, the issue is the employee's and the general mentality of America...
I love the ME3 and TK! If they want to piss billions of dollars down the drain to help bring people to or through their countries then good for them. The US gives subsidies and money to bring tourists and "others" to America, so what does it matter?
Your Bitmoji game is strong, bro. Also, I agree this was a huge waste of time for US carriers.
Well Lucky....this commentary is probably good for a few more upgrades from the lads in the middle east. 😉
US airlines complaining about ( chuckle/barf ) TRANSPARENCY ? FAIRNESS ?
I'm still waiting for the punch line.
Maybe it will be the salaries of the CEOs.