The Open Skies Treaty. What is it and why is Mr. Anderson upset?

Discussion in 'Blogstand' started by Prior2Boarding, Feb 18, 2015.  |  Print Topic

  1. Prior2Boarding

    Prior2Boarding New Member

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    There has been a lot of fuss recently after Delta’s CEO, Richard Anderson, made a controversial connection between the terrorists responsible for the 9/11 hijackings and airlines that are based out of the Arabian Peninsula, such as Emirates. The CNN video is embedded at the bottom of this post. The comment was made because Mr. Anderson is frustrated with the gulf airlines’ advantage in the market and because they provide superior service than his own airline. So what exactly is an “Open Skies Treaty?” Open Skies Treaty, or Treaties, (hereinafter “OST”) are treaties, or deals, made with other countries to remove restrictions on international air travel. The OST eliminates government interference in commercial decisions on things such as routes, capacity and pricing. Usually these policies greatly reduce fares and have been known to increase the level of service offered by the airlines. But that’s obviously debatable. Every OST includes a “fair competition” clause, which prevent parties from engaging in unfair dealings. Why are Delta, American, and United upset over OST? The big U.S. three are upset because Emirates, Qatar, and Etihad are subsidized by their governments. According to Mr. Anderson, the three gulf airlines mentioned above have been subsidized by their [...]
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