The future of Gulf airlines during Trump’s rule
US airlines hope that the US president will stand by their side and stop the expansion of the three Gulf carriers
US airlines hope that the new American president, Donald Trump, will stand by their side and stop the expansion of the three Gulf carriers: Emirates, Etihad and Qatar airlines.
The recent Emirates’ announcement stating that it would start flying to the United States with a stop for passengers in Greece, was a new opportunity for the Partnership for Open & Fair Skies group representing the top 3 US competitors, to report this issue to the newly elected President. The group said it would discuss the matter with the new administration of President Donald Trump to “protect American jobs.”
This problem did not newly emerge. In the last two decades, Gulf companies invaded the international aviation markets, and began to pull the rug from under the Aviation giants in Europe, America and the Far East. Emirates, for example, is nearly undertaking one hundred flights to twelve cities in America on a weekly basis.
Former President Barack Obama did not take quick actions to address this problem; American Airlines hopes that Trump would put this issue on the top of his agenda.
It seems that Morgan Stanley also believes that Trump would impose new regulations on the Gulf airlines. In a recent report, Morgan Stanley predicted that Gulf airlines will be facing new measures under the Trump Management, leading to a reduction of market shares.
Gulf carriers are also working on enhancing their positions; they provided the American authorities in the last 2 years with reports of hundreds of pages to convince the competent US authorities with an opposite point of view. They also managed to establish alliances within the US aviation sector with companies that are interested in facing the strongest 3 companies: “Delta, American Airlines and the United Airlines.”
Moreover, there are some in the US who doubt that Trump would stand against Gulf companies, especially in light of the trade relations he has with some countries in the Gulf region.
Will Trump stand with US airlines against their Gulf rivals?