Great article on Bloomberg this morning. US based airlines – mainly the large ones with huge international networks – United, Delta and American, have been in Washington, DC asking for help in competing against Gulf based carriers. The Gulf based carriers – Emirates, Qatar and Etihad are making big inroads into the US market and taking marketshare from the US based countries. These inroads are mainly due to ‘Open Skies’ agreements that allow carriers from other countries to have access to multiple city in each others markets. This has resulted in the Gulf based airlines flying into multiple markets across the US. Given their better service, people are choosing the Gulf based airlines over the US based airline (who wouldn’t? especially if you are NOT an Elite on a US based airline).
I agree with the author that asking for Congress to reduce ‘open market’ competition is not the way the US based airlines should go. They have equal access to other markets. You compete by offering a better product, at a fair price. That’s free market capitalism. Your thoughts? Share below by leaving a comment.