Who is able to draw the line between fair and unfair? Should the U.S carriers always be the victim?

ME3 also know as Middle Eastern 3, which is the 3 major carriers that are based in Middle Eastern areas, which are Qatar Airways, Etihad Airways and Emirate. ME3 are popular to be known as fastest growing airline, which provide luxury service for international long haul route, with their new and modern fleets. Within the Aviation industry, they are also know as “crazy buyer” of new aircraft, for example Emirates is currently operating more than 100 Boeing 777-300ER aircrafts, and 150more will be delivery to them in the future. (Boeing, 2013) Due to the great geographical location, Middle Eastern Area is growing as the hub around the world. However, one of the important that how are they covering their huge amount of operation cost? It is not hard to find out that ME3 are which they claim as indirectly receiving subsidies from the government(Boarding Area, 2015). As also claim by CEO of Etihad airway that they are currently not making profit and making profit is not their goal of operation (Boarding Area, 2015). The indirect government subsidies cover most of their operation cost, and help them to ignore the probability of their operation and expanding their net work significantly faster than other carriers without worrying about their expense, and also mention by the editor of “boarding time” ME3 are not financially motivated, their intentional is to use the airline industry to put themselves onto the world map and attract trades around the world(Boarding Area, 2015)

According to my research there are no evidence showing that the U.S carriers directly receiving government found. But as we know, aviation is a very costly industry, most of the airlines around the world are soon how receiving indirectly benefits for example fuel tax break. The editor of the “wing views” states that U.S carrier were receiving subsidies during very early stage of the operation, and they are currently might be receiving some tax break. (Leff, 2015) However, the writer claim, U.S carriers are working very closely with government subsidies carrier around the world, especially their Alliance partner, which Delta could be a example of working closely, with China Eastern which is a largely government subsidies Chinese carrier, Delta actually bough 450million worth of stock of China Eastern, which they can potentially receive benefits at expanding Shanghai and Chinese Market. (CNBC, 2015) However the benefit that an U.S carrier could able to receive from government is really tiny comparing to the amount that middle eastern carriers are currently receiving.

According to my research, the export and import bank actually supports foreign company which import U.S aircraft, the export and import bank will be providing the campiness with a lower interest rate for purchasing U.S built aircraft.(Weisman & Lipton, 2015) which can’t be able to provide to the U.S domestic company. I would say it is unfair to the U.S carrier, however this is the strategy use to promote U.S aircraft manufacturing industry, which can boost up the U.S economy. However, it's clearly that the ME3 are taking advantage of it, placing huge order of aircrafts and expend their marker without concerning the cost.

Overall in my opinion, it is clearly unfair for the U.S Companies, since the main objective of ME3 is not making profit, so that they can expand their market regardless if it's profitable. It creates threat toward carriers around the world. However, the problem is who is able to draw the line between fair and unfair? Are U.S and European governments able to do so? It is clear not as simple as battles between carriers, it is involving with trades between government. UAE government support Emirate to place a 150 orders of Boeing next generation 77X, and they currently running a almost 100 777-300er aircraft. For Airbus, they ordered 85 airbuses A380, without such a big order of A380; the A380 project might be bankrupt due to the huge delays. Over 300 U.S built aircrafts, it is huge trade between two countries, it helps to boost up U.S economic in GDP and provide huge amount of job position. So sadly even if it is extremely unfair for U.S carriers, there are very limited amount of action the both U.S and European government would do under the influence of such a big due. Sadly U.S carrier could only be the victim.

Boeing Emirates orders 150 77Xs. (n.d.). Retrieved March 07, 2016, from http://www.boeing.com/commercial/customers/emirates/emirates-announces-an-order-for-150-777xs.page

Delta to buy 3.55% China Eastern stake for $450m. (2015). Retrieved March 07, 2016, from http://www.cnbc.com/2015/07/27/delta-to-buy-355-china-eastern-stake-for-450m.html

Should The Big Three Middle Eastern Airlines Be Stopped (2015). Retrieved from http://onemileatatime.boardingarea.com/2015/02/08/big-three-middle-eastern-airlines-stopped/

US Airlines Have Received More Subsidies than Middle East Ones - View from the Wing. (2015). Retrieved from http://viewfromthewing.boardingarea.com/2015/04/08/us-airlines-have-received-more-subsidies-than-middle-east-ones/