TheStreet report written by Ted Reed details a new report compiled for the big three U.S. airlines that alleges the Gulf carriers, especially Qatar Airways, Etihad Airways and Emirates, have benefited from illegal subsidies from their respective Gulf governments. According to the report, “The subsidies come in forms including cash grants, interest-free loans and favorable contracts with airports, vendors and suppliers funded and generally owned by the governments, the report said. They inevitably reflect close relationships between governments and the airlines, which are often led by the same families and the same individuals.”
The three carriers are three of the fastest growing airlines in the world.
Read the full report: CLICK HERE
Interest free loans are standard banking practice in Muslim countries where charging interest is unacceptable on religious grounds. Historically this was also true in Western Christian cultures for centuries. The Shakespeare play The Merchant of Venice derides the character Shylock for charging interest by taking his pound of flesh instead of money. Without Jewish finance – possible because they used interest to acquire funds to finance projects Christians could not, the modern would be very different.
Chapter 11 bankruptcy in the US is tantamount to a financial bailout – the courts legally supervise, permit and force wholesale transfer of wealth from creditors, shareholders and employees to debt ridden foolishly run companies like United, Delta and Anerican to name a few to put themselves back on track. Their executives never suffer. This whole report has Delta, the pilots union and lobbyist firms written between every line. It’s time the U.S. airlines competed. The interior of Americans latest 788 is so dull and bland it appears mediocrity is still their favoured path. As Al Maktouhm said “improve your offering and people will fly on your aircraft”.
Thank you Jon as always.
Bruce
And I forgot to say what about the Chinese semi- state owned and regional government supported airlines whose encroachment is just as fast and very much a policy instrument of the Chinese Government? Nobody seems as bothered because it’s far harder to hit at China than make stupid comments about the ME3 as Mr Anderson did.
Good point Jon. Thank you.
Bruce