“Delta Air Lines abandoning its route from Atlanta to Dubai.” This headline made waves. It highlighted a clash in the skies. Delta Air Lines ceased its Atlanta-Dubai service on February 11, 2016. The airline blamed “overcapacity” from Gulf carriers for the pullout.
Delta led the charge with American and United airlines. They accused three rival airlines in the Persian Gulf of receiving unfair subsidies. These subsidies totaled $42 billion over the last decade. The airlines argued that Emirates, Etihad, and Qatar were unfairly advantaged.
The Gulf carriers denied receiving subsidies. They countered that US competitors had unfair advantages. These advantages stemmed from bankruptcy laws unavailable in the UAE and Qatar. They also claimed they hadn’t hurt US airlines.
Delta Air Lines redeployed the Boeing 777. This aircraft had previously served the Dubai route. It was moved to another foreign destination across the Atlantic.
Delta spokeswoman Kate Modolo stated there were too many routes between the US and the Middle East. These routes were operated by government-owned and heavily subsidized airlines. Jill Zuckman echoed this sentiment. She is a spokeswoman for Partnership for Open and Fair Skies. She said “brazen subsidization” would force US carriers out of more routes. It would also hurt the industry.
United Airlines also dropped its nonstop service. This was between Washington Dulles and Kuwait. That route included a one-stop continuation between Kuwait and Bahrain.
Delta, United, and American asked for consultations. They requested the US government to formally consult with the UAE and Qatar. The US airlines wanted an end to the subsidies. Alternatively, they wanted a halt to additional US flights from the Gulf carriers.
Emirates rejected Delta’s claim. They stated there was no head-to-head competition on the route. They also said average seat loads on Atlanta-Dubai had been consistently over 85 percent. This indicated demand or overcapacity wasn’t the issue.
Emirates noted Delta carried significant traffic connecting in Dubai. These connections were to destinations in India, Afghanistan, Iraq, and other cities in the Gulf. Emirates’ studies indicated Delta’s Atlanta-Dubai route was profitable.
The Delta route closure coincided with Qatar Airways’ arrival into Atlanta. Qatar Airways introduced a daily service from Doha. It had feed from destinations across Asia and the Indian sub-continent.
Delta also notified Airlines for America of its plans to leave its membership. The airline felt its $5 million in annual dues could be better used elsewhere. This decision highlighted differing views within the industry. These views included those on government-subsidized carriers in the Middle East.