Fair Skies is good for US consumers

Since the revelation of more than $42 billion in subsidy violations of aviation trade agreements, known as Open Skies, by the governments of Qatar and the United Arab Emirates a few months ago, Americans for Fair Skies has had one request- for the United States government to intercede in the deliberate and sustained circumvention of these trade Agreements that are distorting the international aviation market. Their violation of U.S. trade policy threatens an industry that in 2012 alone accounted for more than 5.1% of U.S. GDP and 11.3 million American jobs.

Since the evidence of the more than $42 billion in subsidies was revealed, countries such as France, Germany, and the Netherlands have taken action to support their national aviation infrastructure and its workers from market-distorting subsidies by halting the allocation of new routes into their respective countries by the subsidized airlines of Emirates and Etihad, of the UAE, and Qatar Airways of Qatar, until the subsidy issue is resolved.  

{mosads}The United States has not yet taken official action on the evidentiary findings, however the US Departments of State, Transportation, and Commerce have opened a docket to continue collecting evidence and testimony on the subsidy issue.

On behalf of the millions of Americans who work in the aviation industry, Americans for Fair Skies would like to see a swift resolution to the Gulf subsidy violations of Open Skies. We are confident that the U.S. takes seriously the harm subsidies have and will do to our economy, our workforce, and ultimately, yes, consumer choice, and will take the action necessary to make sure these violations are resolved.

What we at Americans for Fair Skies find disappointing is the response to the subsidy violations by those who claim to represent U.S. consumer interests, but are really working on behalf of the UAE and Qatar. Instead of acknowledging the devastating impact of the loss of our national aviation infrastructure, millions of American jobs, and what that would do to consumers, these parties have instead chosen to speak from their bank accounts. It is incredibly distressing to read the words of so-called “consumer advocates” advocating for the continued violation of U.S. trade policy. 113 of 115 Open Skies agreements are working well and are supported broadly by the U.S. airline industry and its employees – that is true consumer choice. And the two agreements that are not working must be restored to fairness if the marketplace is to truly be open and free.

Open Skies has increased competition and air access to international destinations. However, when Open Skies are circumvented, for the unfair benefit of one particular side, then Open Skies, and broadly U.S. trade policy, ceases to work effectively. The private, open marketplace created by Open Skies that allows for unrestricted access to routes into the U.S. only works when those routes are competed for on a level playing field free from subsidies. None of the benefits of Open Skies will be realized long term by the countries, companies, or consumers affected by such agreements if their very tenants are manipulated to remove actual competition from occurring.

Americans for Fair Skies believes that restoring Open Skies to allow for fair competition is exactly what is best for consumers. It will allow those companies dedicated to delivering a superior quality product to survive. But when foreign governments interfere with subsidies and private companies are forced to compete with national treasuries, fair competition is impossible. If the Gulf airlines are so sure they are what is best for the consumer and those who claim to represent U.S. consumer interests agree, then they should do away with the subsidies, compete on a level playing field, and the fittest will survive. Ultimately, American consumers will be left with a superior quality product and a robust international travel industry. That’s Open Skies as intended.  Why is that not what’s best for consumers?

Learn more at fairskies.org.

Moak is president of Americans for Fair Skies, a veteran U.S. Marine Corps and Navy fighter pilot, former United States Commercial Airline pilot, and the former president of Air Line Pilots Association, International.