Probe to be Conducted by U.S. Agencies in Relation to Gulf Carrier Dispute

Etihad-AirwaysOn Friday, three of the federal departments decided to probe the accusation brought by the United, American and Delta airlines, the largest three of the U.S. airlines that Persian Gulf carriers like the Emirates, Etihad and Qatar Airways, owned by the state are receiving unjust subsidies coming from their respective governments.

The department of State, Transportation and Commerce said that the allegations of subsidy which is worth $42 billion warrants for a public hearing. Therefore the arguments put forward by both the sides will be heard on a public forum, which will be a regulatory web site.

In a statement the departments said, “The claims, which are asserted in a publicly available report, are of significant interest to stakeholders and all three federal agencies. The U.S. government takes seriously the concerns raised in the report and is interested in receiving insights and feedback from stakeholders before any decisions is made regarding what action, if any, should be taken.”

However, the Gulf airlines have denied the accusations of receiving any government subsidies. The airlines have also said that the ongoing debate will first be conducted between the governments of the U.S. and concerned Gulf countries.

The argument started one month back when the three largest US carriers along with their unions released a long fifty five page report stating that the Gulf carriers had got minimum $42 billion as subsidies in the last ten years.