Gulf carrier cheaters threaten US aviation jobs

Early in my career, I had the honor of working for former President Ronald Reagan, a man who embodied our nation‘s values and who knew how to stand up to foreign governments. President Reagan would have been shocked to see that today an important sector of our nation‘s economy is under attack by foreign governments. And so far, our country has not pushed back.

The U.S. aviation industry is facing a significant threat from the United Arab Emirates and Qatar that could mean the end of our industry as we know it. And that means the livelihoods of 1.2 million Americans who count on a strong aviation industry are at-risk.

The three state-owned Gulf carriers – Emirates, Qatar Airways and Etihad Airways – have received over $50 billion in subsidies from their governments in the last decade, skewing the free market and putting American jobs at risk. These subsidies are breaking the rules established by our international trade agreements with the UAE and Qatar, which were intended ensure fair competition and eliminate government interference.

While the U.S. continues to stand on the sidelines, countries around the world have taken action against the harmful effects that heavily subsidized Gulf carrier expansion has in their markets. The European Union recently announced an expanded set of rules to guarantee that foreign airlines are abiding by fair competitive practices on their routes to Europe. Japan, China, and Germany are among the countries that limit the number of cities that Gulf carriers can fly to within their borders. Canada has implemented some of the strongest policies to ensure fair competition, which has already shown positive results for its domestic airline. Because they now compete with the Gulf carriers on a more level playing field, Air Canada has been able to increase its flights to India and the Gulf countries.

The U.S. government has the responsibility to ensure our agreements are enforced and our trading partners are following the rules. If we don't stand up to trade cheaters, the United States will be sending a signal to the world that any foreign government can violate their trade agreements with us. President Reagan would not have stood for this.