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By Jeffrey Dastin
April 15 Potential changes to U.S. Open Skies
pacts with Qatar and the United Arab Emirates could involve new
rules on price-lowering and capacity-dumping, Delta Air Lines
Inc Chief Executive Officer Richard Anderson said on
The remarks during a conference call on the company's
earnings represented one of the clearest statements yet by U.S.
airlines on what they hope talks between the U.S. and the Gulf
states would achieve if they take place.
Delta and other U.S. airlines have charged their Gulf
competitors with receiving more than $40 billion in subsidies
from their home governments. This, they say, has allowed them to
lower prices and begin pushing U.S. airlines out of key markets.
Emirates, Etihad Airways and Qatar Airways have
denied the allegations, saying U.S. carriers have lost market
share because of inferior service.
"We're in the process of answering questions (from the U.S.
government)," Anderson said, "and the end result needs to be
like the Chinese steel case or agricultural cases that the U.S.
frequently brings (to the World Trade Organization), where you
come up with remedies that will address a subsidy."
The Obama administration on Friday solicited comments on the
debate and said it expected to begin reviewing submissions by
the end of May.
The government has not indicated whether it would discuss
the subsidy claims with Qatar and the UAE.
(Reporting by Jeffrey Dastin; Editing by Lisa Von Ahn)