Unfair competition. US air carriers require satisfaction – they lost 2 billion

10:01 21.03.2023 •

Yes, US air carriers require satisfaction after a ‘debit/credit operation’, when they have already lost $ 2 billion a year as a result of Western, ibid USA, sanctions against Russia.

‘The New York Times’ reveals the details of the scandal: Unable to fly through Russian airspace because of the war in Ukraine, U.S. airlines are stepping up a lobbying campaign on Capitol Hill and at the White House to address what they say is a growing problem – they are losing business to foreign competitors who can take passengers between the United States and Asia faster and more cheaply.

They also have altered trans-Pacific flight plans to ensure they would have somewhere to land in an emergency, reduced passenger and cargo loads to hold down costs as they fly longer distances, and put on hold more than a dozen planned new routes to Mumbai, Tokyo, Seoul and other cities.

Yet many foreign airlines are not banned from flying over Russia, U.S. airlines and their lobbyists say — and are winning more passengers on routes to and from the United States as a result.

Continued access to the shorter and more fuel-efficient routes that Russian airspace provides is giving carriers like Air India, Emirates and China Eastern Airlines an unfair advantage, the industry lobbying group Airlines for America said in a recent presentation on Capitol Hill.

Airlines for America estimated the lost annual market share of U.S. carriers at a collective $2 billion per year.

Foreign airlines using Russian airspace on flights to and from the U.S. are gaining a significant competitive advantage over U.S. carriers in major markets, including China and India,” the presentation, dated February, said. “This situation is directly to the benefit of foreign airlines and at the expense of the United States as a whole, with fewer connections to key markets, fewer high paying airline jobs” and a dent in the overall economy.

U.S. airlines for years had access to Russian airspace through a series of agreements with Moscow.

But after the beginning of Russia special military operation in Ukraine last year prompted government officials in the United States, Britain, Canada and Europe to ban Russian aircraft from flying over their airspace, Moscow immediately prohibited the United States and other supporters of Ukraine, including Canada and much of Europe, from flying through its skies.

Now airlines are pressing the White House and Congress to fix the problem by subjecting foreign carriers from nations not already banned from Russian airspace to the same restrictions applied to U.S. airlines, effectively forcing them to fly the same routes as their American competitors.

The proposal appears to have gained traction with the Transportation Department, which recently drafted an order that would ban Chinese carriers that fly passengers to the United States from flying through Russian airspace, according to three people who were briefed on the order.

Transportation Department officials declined to comment. But national security officials are mindful of the potential diplomatic consequences of steps aimed at a longtime ally like India, or of adding further tension to the already strained relationship with China.

A spokesperson at the State Department, which is involved in an interagency government review of the airspace issues, said the department was aware of the concerns and regards the safety of U.S. citizens on foreign soil as a top priority.

“It’s just unfortunate for our air carriers that this has been a collateral issue,” said Manisha Singh, a former assistant secretary for the bureau of economic and business affairs at the State Department who now runs a consulting firm in Washington.

 

…American airlines faced real ‘free market’ competition being banned from flying over Russia. The West has already failed with the idea of banning the trade of Russian oil within their "price cap".  Now US airlines are at risk of even more losses and for this reason try to convince their authorities to impose restrictions on flights of airlines from other countries. Does it look like “a free market” to you? What next from the main western liberal?

 

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