sky wars

Lufthansa Criticizes Gulf Rival's Subsidies

etihad takeoff shotshop
Are some airlines fueled by unfair subsidies?
  • Why it matters

    Why it matters

    If some airlines are subsidized and others are not, competition in the global passenger travel industry could be distorted.

  • Facts


    • Lufthansa, Germany’s flagship airline, faces growing losses, a cash shortage and labor unrest.
    • Emirates, Etihad, Qatar and Turkish airlines’ fleets are expected to double in size by 2020.
    • At the Aviation Summit, airlines from the Gulf and United States clashed over open skies agreements.
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The annual Aviation Summit in Washington, D.C. tends to be a calm affair, at a hotel near the White House, with plenty of hand-shaking and polite speeches.

It wasn’t just business as usual on Tuesday, when Lufthansa chief executive Carsten Spohr said an “oligarchy” of airlines from the Gulf was destroying competition on the market for passenger flights and would soon dominate the global market.

His concerns were founded on a study carried out by American Airlines, Delta and United Airlines that found Etihad, Emirates Airline and Qatar Airways received $42 million in subsidies.

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