Dubai: A report, commissioned by Etihad airlines, and released on Thursday revealed that the United States’ three largest airlines have received over $70 billion in government associated benefits.
Etihad, along with Emirates and Qatar Airways, had been accused by US carriers, Delta, United and American, of “having unfairly benefited” from $42 billion in state subsidies over the past decade. The US carriers are trying to block the growth of Gulf airlines into the US.
However, the report, conducted by consultancy The Risk Advisory Group and commissioned by Etihad, shows that the US’ three biggest airlines have actually received $71.48 billion of government money in benefits associated with Chapter 11 restructuring and bailouts from the Pension Benefit Guranty Corporation, most of which since 2000.
Etihad argue the benefits have helped Delta, United and American “transition from the verge of bankruptcy to today’s industry leaders, each achieving multi-billion dollar profits.”
The report says United have been the largest beneficiary totalling a combined estimated $44.4 billion. Meanwhile, it also shows all three airlines have benefited from billions in fuel tax savings, tax incentives and funds.
Partnership for Open & Fair Skies, a lobby group representing the three US airlines Thursday denied that the American airlines have received “comparable financial benefits to the Gulf carriers.”
Jill Zuckman, chief spokesperson, said by email to Gulf News, the report contained “baseless claims.”
The three US airlines last year collected a combined $8.97 billion in net profit, which the report points out was equivalent to 45 per cent of the $19.9 billion profits achieved by the global airline industry in 2014.