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Wed, Jun 03, 2015

Emirates CEO Rebuts Emanuel's Claims Of Unfair Subsidies For Mid East Airlines

Sends Letter To Chicago's Mayor Expressing Disappointment

There is something of a war of words going on between Chicago Mayor Rahm Emanuel and Emirates Airline president Sir Timothy Clark.

Last month, Mayor Emanuel sent a letter to U.S. Secretary of Commerce Penny Pritzker, U.S. Secretary of State John Kerry and U.S. Secretary of Transportation Anthony Foxx saying he has "serious concerns" about subsidies to Middle Eastern carriers he says are unfair, and which have an impact on U.S. Airlines. He was referring to approximately $42 billion in subsidies paid to the carriers by their respective governments to assist in their expansion efforts.

The Chicago Business Journal reports that Clark has responded to Emanuel with a letter of his own, saying the Mayor's assertions left him "surprised and more than a little disappointed."

Emanuel said in his letter that the three Gulf-region carriers that serve Chicago employ fewer than 50 people in the area. But Clark countered that according to statistics from the Chicago Department of Aviation, Emirate's daily nonstop flights between Dubai and O'Hare account for some $200 million in economic benefits for the region.

Clark pointed out that neither United of American Airlines offers a nonstop service from Chicago to Dubai.

Meanwhile, the exchange of letters came just a few days before executives from Emirates planned to be in Chicago to recruit new pilots for its worldwide operations.

FMI: www.emirates.com, http://www.cityofchicago.org/city/en/depts/mayor.html

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