US plans Qatar, UAE talks on airline subsidies

The US State Department is planning talks with Qatar and the United Arab Emirates to discuss allegations that the Persian Gulf nations have spent billions of dollars subsidizing their state-sponsored airlines, people familiar with the matter said. The Trump administration will seek commitments to financial transparency, said the people, who asked not to be identified because the talks are private. They said the meetings will start as early as this week. US airlines have been pushing for a crackdown on what they describe as more than $50b in unfair subsidies for Qatar Airways, Emirates and Etihad Airways. The State Department will also inquire about the Persian Gulf airlines’ plans for “fifth freedom” flights, which start in an airline’s home country and touch down in a different nation before continuing on to the US, the people said, citing a meeting Tuesday between US aviation-related executives and the State Department. US officials will also push the Persian Gulf countries to keep an arm’s-length approach toward their carriers, the people said. Government-to-government talks would mark a renewed US focus on the airline trade spat, which has been raging for years. Earlier this year, President Donald Trump said the Persian Gulf carriers received major government subsidies, without specifying what action he might consider. The Obama administration conducted “informal, technical” discussions with representatives of Qatar and the UAE late last year without taking action.<br/>