US: Spat over which US airlines fly government workers intensifies

A spat among airlines over which deserved the contract to fly US government workers on certain routes intensified on Tuesday, with the CE of JetBlue Airways Corp calling rivals hypocritical for protesting its award. The largest US airlines have taken issue with a contract for federal employees to buy flights between New York and Milan in 2017 from JetBlue, which are marketed by the New York-based airline but operated exclusively by its codeshare partner, Dubai-based Emirates. Delta, No.2 by passenger traffic, has said the award undermined the "Fly America Act" that requires taxpayer-funded travel to take place on domestic carriers, for the benefit of US companies and jobs. The contract also struck a nerve because Delta and peers are embroiled in competition and an ongoing row with Emirates. US airlines have lowered fares to fill planes to Europe - a response in part to Gulf rivals that have added flights at a loss thanks to state subsidies, they allege. Emirates has denied it is subsidized. The Fly America Act permits exceptions for codesharing agreements with foreign airlines, however. Carriers such as Delta and American Airlines Group Inc take advantage of this, JetBlue CEO Robin Hayes said. "It’s quite clearly hypocritical nonsense," Hayes said. "If the big three airlines can continue to win these contracts using their partners, flying on their partners' metal, why can’t JetBlue?"<br/>