Global Airlines

1.  According to the Air Transport Agreement , airlines from the United States and the United Arab Emirates are allowed the following ("Air Transport Agreement Between the Government " 2002):

• Airlines from each party are allowed to fly across the other's territory without landing ("Air Transport Agreement Between the Government " 2002). 
• Airlines are allowed to make stops in each other's territories for non-traffic purposes ("Air Transport Agreement Between the Government " 2002). 
• Each party is allowed to designate as many airlines as it wants to conduct international service between the two parties. The designation of flights must be approved through diplomatic channels ("Air Transport Agreement Between the Government " 2002). 

Although a specific airline is not mentioned in this agreement, two airlines that are accused of receiving government subsidies are Emirates and Etihad. Both airlines operate newer aircraft. They are very well known for their on board services. They are likened to Pan Am during the golden age of aviation. They resemble their home country (UAE) with their product and customer service (Zhang, 2015).

2. Although U.S carriers do not directly receive subsidies, there are many ways that one could say they are indirectly receiving subsidies (McGee, 2015):

• Delta bought a stake in China Eastern, which does receive government subsidies (McGee, 2015).
• The Essential Service program subsidizes airlines to fly to 163 rural communities around the country (McGee, 2015).
• After 9/11, the government bailed out airlines for the grounding of their flights. This was enacted through the Air Transportation Safety and Stabilization act (McGee, 2015). 

3. The major purpose of the Export-Import Bank is to help American businesses sell their products and services internationally. Certain U.S carriers allege that the Export-Import Bank is providing loans at lower interest rates to foreign carriers to buy Boeing aircraft. This in turn allows foreign carriers to operate at lower costs because they owe less in interest fees (Wiesman & Lipton, 2015).

4. The most recent issue regarding Norwegian Air Shuttle is that it is using unfair labor practices. Airlines in the United States allege that Norwegian Air Shuttle is trying to go around certain laws. They say that by being headquartered in Ireland, they do not have to follow the same safety laws and same labor laws. U.S carriers also allege that Norwegian is hiring crews from Asia for below-market wages. The Open Skies agreement between the U.S, European Union, and Norway states that the agreement cannot undermine labor standards or rights or principles. U.S carriers and their employee unions feel that the business practices of Norwegian Air Shuttle does in fact undermine those  labor standards, so they should not be allowed to operate flights to the U.S. The Department of Transportation, however, did not see that the practices of Norwegian Air Shuttle warranted the blockage of flights by the carrier (Jansen, 2016).

5. I feel that the global playing field of long haul carriers cannot be fair completely. Long haul carriers can be continuously regulated by different agreements and policies in order to make the playing field more fair. I feel that polices such as Open Skies are there to encourage a healthy travel industry. However, since each nation of the world has different laws and regulations, no amount of policies will make the playing field even. Additionally, one policy put in place may harm one sector of the economy while benefiting the other. For example, the Export-Import Bank have caused foreign carriers to receive lower interest rates than those offered to U.S carriers. However, this policy allowed Boeing (a major force in the U.S economy) to receive orders that might have gone to another manufacturer if the Export-Import Bank did not exist. 

References

Zhang, B (2016). A Nasty Rivalry Between US and Middle East Airlines Has Been All for Naught. Business Insider. 

Retrieved from: http://www.businessinsider.com/open-skies-american-delta-united-etihad-qatar-emirates-2016-6

(2002) Air Transport Agreement Between The Government of the United States of America and the Government of the United Arab Emirates. U.S Department of State. 

Retrieved from: https://www.state.gov/documents/organization/125743.pdf

McGee, B (2015). How Much do Taxpayers Support Airlines? USA Today.

Retrieved from: http://www.usatoday.com/story/travel/columnist/mcgee/2015/09/02/how-much-do-taxpayers-support-airlines/71568226/

Weisman, J & Lipton E (2015). Boeing and Delta Spend Millions in Fight Over Export-Import Bank's Existence. The New York Times.

Retrieved from: https://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html

Jansen, B (2016). DOT Approves Contested Norwegian Air Flights. USA Today. 

Retrieved from: http://www.usatoday.com/story/travel/flights/todayinthesky/2016/12/02/dot-approves-contested-norwegian-air-flights/94838292/