💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Qatar Airways' plans to boost flights may rile U.S. airlines

Published 05/04/2015, 05:05 AM
Updated 05/04/2015, 05:12 AM
© Reuters. An Airbus A350 XWB is pictured on the tarmac during the first delivery of this new passenger jet at Qatar Airways in Toulouse
BA
-
AIR
-
DAL
-
UAL
-
AAL
-

By Jeffrey Dastin

NEW YORK (Reuters) - Qatar Airways on Monday said it plans to expand its services to the United States, in a move that likely will trigger a backlash from U.S. airlines that accuse it of competing unfairly through state subsidies.

The Gulf carrier announced its first direct flights to Los Angeles, Boston and Atlanta from its Doha hub and its second daily flight to New York.

The expansion comes as Delta Air Lines Inc (NYSE:DAL), United Continental Holdings Inc and American Airlines Group Inc press for a temporary freeze on new Gulf airline service to the United States.

The U.S. airlines and their unions have alleged that Qatar Airways, Emirates airline and Etihad Airways have received more than $40 billion in subsidies from their home governments in the last decade.

This, they say, has allowed the Gulf carriers to drive down ticket prices and begin pushing competitors out of key markets.

The Gulf carriers have denied the allegations and said U.S. airlines are losing market share due to poor service.

Qatar Airways said it would fly two-aisle Boeing (NYSE:BA) Co 777 aircraft to Los Angeles and Atlanta. It would fly a two-aisle Airbus Group (PARIS:AIR) NV 350-900 XWB aircraft on its Boston route and for its second New York flight.

Los Angeles service begins January 1, 2016, followed by Boston on March 16 and Atlanta on July 1.

While the Obama administration said it would begin reviewing interested parties' comments on the subsidy claims by the end of May, the three U.S. airlines have charged the Gulf carriers with taking advantage of the waiting period, with Emirates adding new flights to Orlando, Boston and Seattle.

© Reuters. An Airbus A350 XWB is pictured on the tarmac during the first delivery of this new passenger jet at Qatar Airways in Toulouse

"These additional flights and capacity increases will exacerbate the existing harm to U.S. airlines by diverting even more passengers away from U.S. airlines' services to Gulf carriers' subsidized services," the chief executives of the three U.S. airlines said in a joint April 17 letter to the administration.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.