Release #: Vol. 84, No. 3
April 01, 2015
Our Union: Compete with Honor
By Capt. Tim Canoll, ALPA President
Headlines splashed across newspaper editorial pages, a crescendo of bipartisan opposition on Capitol Hill, and thousands of signatures from an incensed public signaled the aftershock of a Partnership for Open & Fair Skies report documenting an astounding $42 billion in government subsidies given to Qatar Airways, Etihad Airways, and Emirates Airline as they compete for international business.
For years, ALPA has drawn the distinction between the fair competition that U.S. Open Skies agreements are designed to protect and that is supported by U.S. airline workers and the unfair competition spurred by the government subsidies that some Middle Eastern airlines have received that have catapulted them onto the world stage—and without which they might well not be in business.
“It’s not just a job-loss threat for those who fly or would fly these international routes; it affects the entire system. ”
It’s important to remember that the unfair economic benefits aren’t necessarily direct handouts. These foreign airlines benefit from interest-free “loans” that don’t require repayment, government assumption of fuel-hedging losses, free land, a tax-free home business environment, and a state-provided, state-of-the-art infrastructure.
As Capt. Mike Donatelli, the Delta pilots’ Master Executive Council (MEC) chairman, and Capt. Jay Heppner, the United pilots’ MEC chairman, said in a joint letter to their pilot groups, “These airlines do not compete fairly, where demand determines capacity and the bottom line drives growth.”
The principle of fair competition in the economic marketplace has long been a core component of the American legal system. So, too, has it been a core component of air service agreements between the United States and its trading partners, including its Open Skies agreements with the United Arab Emirates (UAE) and Qatar. Then, as now, the U.S. policy was squarely premised on fair competition and a market undistorted by government interference.
The massive strategic support that the UAE and Qatar have poured into their airlines because they consider them to be key assets in achieving the economic diversification needed to finance their nations’ futures without oil is completely at odds with this policy objective. Yet, it appears that these countries will stop at nothing to ensure their airlines win in the global marketplace.
In truth, these Middle Eastern airlines aren’t attracting new passengers to international flying. Rather, they are capturing existing passengers who would otherwise be flying on U.S. airlines and their regional and European partners. As a result, U.S. airlines are losing international business and U.S. jobs are at risk.
But it’s not just a job-loss threat for those who fly or would fly these international routes; it affects the entire system. Capt. Paul Ryder (ExpressJet), ALPA’s fee for departure resource coordinator, has underscored that a decrease in international flights will result in fewer flights to smaller communities and slower career progression for all pilots.
In response, ALPA is calling upon the Obama administration to open consultations with Qatar and the UAE to get the facts and to request a freeze on current passenger service to and from these countries during the consultations. (Unfair competition from state-supported foreign airlines is just one of the global challenges ALPA is working to counter. See “Four Global Aviation Challenges,” page 24.)
Finally, on a separate subject, our union continues to feel a profound sense of sadness at the loss of Germanwings Flight 4U 9525, and our thoughts remain with the victims and their families. As with every accident, we caution all concerned against speculating and encourage the parties to investigate with the single goal of advancing safety. Today, airline travel is the safest form of transportation in the world because of a dedicated commitment by government, industry, and labor to work together to achieve the highest safety standards.
The tragic accident is a reminder of the still unresolved disappearance of Malaysia Airlines Flight 370. Our industry owes it to all involved to maximize the tracking technology already available on airplanes and make standard the satellite surveillance of aircraft during flight. In addition, and particularly important in the context of the recently issued interim report, stronger transmitters and better battery technology in emergency locator transmitters must be required.
It may be in the pursuit of higher safety standards or equal economic terms, but the honor comes when the fight is fair and right.
This article is from the April 2015 issue of Air Line Pilot magazine, the Official Journal of the Air Line Pilots Association, International—a monthly publication for all ALPA members.-###-