The US government has told US airlines that US secretary of state Rex Tillerson will finalize an agreement with Qatar on Jan. 30 in which state-owned Qatar Airways will commit to be more financially transparent and declare that it has no plans to operate fifth freedom flights to the US.
The anticipated accord comes after the State Department in December told US airlines it will not formally reopen negotiations on Open Skies agreements with the United Arab Emirates (UAE) and Qatar, but instead will engage the Gulf countries in informal talks over alleged subsidies to Gulf airlines. US major airlines American Airlines, Delta Air Lines and United Airlines have alleged billions of dollars in subsidies from the UAE to Emirates Airline and Etihad Airways and from Qatar to Qatar Airways have harmed the US majors and violate the US’ Open Skies agreements with the two countries.
American, Delta and United welcomed the anticipated agreement between the US and Qatar. “This landmark action will help create a level and fair playing field for American Airlines and other US carriers,” American chairman and CEO Doug Parker said in a statement, adding, “The [Trump] administration’s actions today thoughtfully address the illegal subsidies received by Qatar Airways, and most importantly, support [US] workers.”
Although the agreement is not expected to be at the level of a binding treaty and will not formally amend the US-Qatar Open Skies agreement, American, Delta and United view it as a political commitment by the Qatari government to the US government on which it would be difficult for Qatar to backtrack in the future.
Qatar is expected to commit that Qatar Airways will follow internationally accepted accounting and auditing standards when reporting financial results and will conduct all transactions on generally accepted commercial terms. Also, the airline will say it has no plans to operate fifth freedom flights to the US.
A high-level Qatari delegation is in Washington for a “strategic dialogue” with the State Department and other US government departments starting Jan. 30, and the issue of US major airlines’ complaints about alleged subsidies to Qatar Airways is expected to be among the topics addressed in a Jan. 30 meeting with Tillerson. The Qatari government has said “a number of agreements, MOUs and letters of intent” between the two governments will be signed this week.
During a December meeting in Washington, State Department officials told US airlines the US government would seek a commitment from the Gulf states and the Gulf airlines to be financially transparent and ask about details on the three carriers’ plans for operating fifth freedom flights to the US.
There is no indication that the US and UAE have reached a similar agreement to the one expected to be finalized between the US and Qatar on Jan. 30.
Source:ATW
