The domestic American airlines (including United and
American) are currently lobbying the government for renegotiated international agreements
which govern foreign airspace. This comes in response to reports that foreign
airlines are receiving government subsidies while domestic American airlines
are not. These agreements attempt to eliminate government interference and allow
domestic American airlines to compete with foreign carriers without as many
restrictions.
Emirates has already confirmed receiving government subsidies.
The latest reports indicate the amount to be in the billions. Qatar has also
received government subsidies. The latest reports indicate that the foreign
carriers (including Emirates and Qatar) have received over 40 billion dollars
in the last few years (Arnold 2015).
There are some reports that claim the domestic American
airlines have received government subsidies as well. The latest report was 150
billion dollars over the last one hundred years. This report have do not
account for what the money is spent on (around 140 million was spent on a trust
fund that supported Federal Aviation Administration spending). American based airlines
have even contributed money towards the fund. American based airlines
contribute around 10 million annually to the fund (Reed 2015).
The foreign airlines have also taken advantage of below
market interest rates. The United States Export Import Bank provides reduced
interest rates to foreign purchases in an attempt to reduce credit risk to
potential buyers. This has created a lot of controversy. Boeing was strongly
lobbying Congress to have the United States Export Import Bank discontinued. Boeing
manufactured jets are purchased by these foreign airlines at reduced interest
rates.
I think this problem should be addressed. This provides an
unfair advantage to foreign airlines. They have a better overall infrastructure
due to massive government subsidies and are able to purchase large quantities
at reduced interest rates (the American based airlines do not benefit from
either of these).