FEDEX, ATLAS, AND JETBLUE REBUKE AMERICAN, UNITED AND DELTA’S OPEN LETTER TO PRESIDENT TRUMP
May 16, 2019
The CEOs of FedEx, Atlas Air Worldwide, and JetBlue Airways issued a strong rebuke to the open letter to President Trump penned by the CEOs of American Airlines, United Airlines, and Delta Air Lines, which claimed that Qatar Airways’ 49 percent stake in Air Italy violated the U.S.-Qatar Open Skies agreement. In the open letter, American, United and Delta called on the President to “hold Qatar accountable” for essentially subsidizing Air Italy’s expansion in the U.S. Air Italy has recently announced that it is launching new routes to Los Angeles, San Francisco, and Miami. American, Delta and United argued that, by virtue of this investment, Qatar is circumventing its commitment not to initiate new fifth freedom flights to the U.S.
On April 17, 2019, FedEx CEO Rob Smith, Atlas CEO Bill Flynn and JetBlue CEO Robin Hayes responded via their own letter to the U.S. Secretaries of State and Department of Transportation characterizing American, Delta and United’s letter as a “disinformation campaign.” The response letter also claimed that Qatar has a minority stake in Air Italy, and its operations would be 3rd and 4th freedom – not 7th freedom.
Senator Ted Cruz (R-Texas), chairman of the Senate Commerce Committee’s aviation and space subcommittee, has indicated that he will schedule hearings into Qatar’s stake in Air Italy sometime in May 2019.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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