CapTrade Authors Reports on Gulf Airlines’ Subsidies
On August 24, 2015, The Partnership for Open and Fair Skies released Response to the Gulf Airlines’ Comments on Subsidies Valuations a follow-up to the January 25, 2015 report Evidence of Actionable Subsidies Received by Etihad Airways, Qatar Airways and Emirates Airline. Both reports were prepared by Charles Anderson of CapTrade and are detailed below.
The initial report, which has been described as “a remarkable piece of detective work” by The Economist (April 25th, 2015), documents the subsidies bestowed on Etihad Airways, Qatar Airways, and Emirates Airline, by their respective governments. The study quantifies the benefits using standard WTO/ U.S. government subsidy calculation methodologies. All told, the actionable subsidies received by the three Gulf Airlines amount to over $40 billion. Among the forms of benefits found are government equity infusions, interest free, non-repayable “loans,” loan guarantees, debt forgiveness, the provision of goods and services (including airport facilities) at less than adequate remuneration, tax exemptions, and assumption of promotional expenses. Copies of the report, as well as additional information and back-up documents can be found below and at the Partnership for Open and Fair Skies website.
Review the report here:
2015-01-25 CapTrade Gulf Airlines Subsidies Report
The follow-up CapTrade report, Response to the Gulf Airlines’ Comments on Subsidies Valuations, dated August 24, 2015, is also available below and at the Partnership for Open and Fair Skies website. The follow-up report addresses the criticisms of the original CapTrade report made by the three Gulf airlines and presents evidence of new subsidies received by Etihad.
Review the follow-up report here:
2015-08-24 CapTrade Draft Response to Gulf Airlines Comments
