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Transportation

Air Italy Expansion Reignites Open Skies Flap

By Michael B. Baker / December 06, 2018 / Contact Reporter
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The dustup over Open Skies between the U.S. and Qatar has resurfaced now that Air Italy, which is 49 percent owned by Qatar Airways, has announced network expansion plans to the U.S. next year.

Air Italy, rebranded from Meridiana, announced this week that in April, it will begin flights between Milan and each Los Angeles and San Francisco. The carrier began service to New York and Miami this year.

The Partnership for Open & Fair Skies is crying foul over the announcement. The coalition of American Airlines, Delta, United and several airline labor organizations formed amid earlier allegations that Qatar, Emirates and Etihad were benefiting from government subsidies in violation of Open Skies. They claim that Air Italy, with its financial support from Qatar, is essentially a fifth-freedom route for Qatar Airways, meaning a route whose origin and destination each fall outside Qatar Airways' home country. Agreements reached between the U.S. and each Qatar and the United Arab Emirates this year indicated that none of the Gulf carriers had plans to add such routes.

In addition, 11 Republican U.S. senators, led by Ted Cruz of Texas, have sent a letter to Secretary of Transportation Elaine Chao, Secretary of State Mike Pompeo and Secretary of Commerce Wilbur Ross. The letter asked for "further examination and a response" regarding the Air Italy expansion. "Two days after Qatar Airways closed the acquisition of its stake in Meridiana, Qatar Airways CEO Akbar Al Baker announced at a press conference that Meridiana would be relaunched as Air Italy with new aircraft, new branding and an expansion of its international network," the letter said. "Without funding from Qatar Airways, Air Italy would be unable to launch its new service, just as Qatar Airways would not be viable without direct support from the Qatari government."

Qatar Airways, along with the other Gulf carriers, long has contended that what its opponents claim as government subsidies and benefits do not qualify as such.

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