The Traderszone Network

Published in TZ Latest News 18 March, 2015 by The TZ Newswire Staff

U.S. to chart new territory in Gulf airline subsidy review

The Obama administration said Wednesday that it is in the early stages of studying claims that Gulf airlines have received market-distorting subsidies, a review involving uncharted territory for the U.S. government. No international trade rules or precedent by the United States exists for addressing airline subsidy claims, presenting a challenge for the administration as it determines how to proceed, a person familiar with the matter said. U.S. airlines contend that Gulf carriers can lower prices and offer more amenities on newer planes because of state subsidies.

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