Delta's rivals strike back after the airline posted a video attacking Middle Eastern carriers
Now, the airline's rivals have hit back at Delta with an economic impact study and an attack ad of their own.
The long-running feud between America's three legacy carriers their Middle Eastern rivals continues to be most the volatile and heated business dispute in recent memory.
Here's the shorthand version of the feud: Since 2015, American, Delta, and United Airlines (the US3) have been complaining about competition from three huge and fast-growing Middle East-based rivals - Emirates, Etihad, and Qatar Airways (the ME3).
The US3's position, which is succinctly explained in Delta's 15-minute-long video, argues that the ME3's growth has been fueled by more than $50 billion in subsidies over the past decade. As a result, they believe this allows the ME3 to flood the international market with un-sustainably low prices designed to drive out competitors and threaten the job security of US aviation workers.
"They're taking our jobs, they're taking our markets, and over time, they want to take over international flying," Delta CEO Ed Bastian said of the ME3 in the video.
Delta and its allies believe the playing field is inherently unbalanced and that it is unfair to expect a private company to compete against the resources of a national government.
As a result, they also say the ME3 are in violation of the Open Skies agreements that govern air travel between the US and 120 nations including the United Arab Emirates and Qatar. The US3 has asked the Trump Administration to re-examine the Open Skies agreements with the UAE and Qatar while prohibiting any further expansion into the US by the ME3.
ME3 and Co. Responds
In reaction, Emirates released a study on Monday claiming the airline's activities generated $21.3 billion worth of economic impact in the US during 2015. The report by Virginia-based consulting firm Campbell-Hill Aviation Group posits that Emirates' activities, directly and indirectly, supported more than 104,000 jobs in the US that year.
Emirates, while closely associated with the government of the Dubai, has always maintained that it is an independent profit driven enterprise. In an interview with the Business Insider earlier this year, the airline's president, Sir Tim Clark, called the US3's unrelenting campaign against his company as "infantile".
Also on Monday, US Airlines for Open Skies (USAOS) released a new 30-second attack ad calling for the Trump Administration to ignore the US3's demands which they characterize as merely an attempt to limit competition. The group whose members include JetBlue, Hawaiian Airlines, UPS, and Atlas Air believe the US3's actions put US airlines operating in the UAE and Qatar at risk for retaliatory actions. In fact, the USAOS believes the US3's campaign will destabilize the whole network of more than 100 Open Skies agreements that support hundreds of thousands of US jobs while saving consumers $4 billion annually in airfares.
The presence of USAOS represents a faction of the US aviation industry that operates in an environment very different from the nation's three remaining legacy carriers. UPS and Atlas Air are two of the world's largest international freight carriers with major operations in the Middle East and around the world. Although they do depend Open Skies agreements to do business around the world, they are not in direct route competition with the ME3.
In 2016, JetBlue was awarded a Fly America Act contract for all US government travel to Dubai as well as between New York and Milan, Italy. Since JetBlue does not operate any long haul international routes, all of its Fly America passengers will actually travel on Emirates planes.
Delta Air Lines declined to comment on the matter and instead referred Business Insider to the Partnership for Open & Fair Skies, the lobbying organization representing the US3 in the dispute. The Partnership did not immediately respond to our request for comment.
Here's Delta's video in its entirety: