US Airlines Receive Benefits Worth $71b
World Economy

US Airlines Receive Benefits Worth $71b

US airlines have received benefits valued at $71.48 billion, more than $70 billion of which has been since 2000, enabling the nation’s three largest carriers to transition from the verge of bankruptcy to today’s industry leaders, each achieving multi-billion dollar profits, according to a recent research.
The research commissioned by Etihad Airways, the national airline of the UAE, quantified a range of government and court-sanctioned benefits and concessions received by the three biggest US carriers, Delta Air Lines, United Airlines and American Airlines Group, and other airlines with which they have merged, TradeArabia reported.
Last year, the three big US carriers generated collective net profits of $8.97 billion, equivalent to 45 percent of the total $19.9 billion profits achieved last year by the global airline industry.
The trend has continued into this year, with all three major US airlines announcing strong net profits for the first quarter.
The international consultancy The Risk Advisory Group, which conducted the research for Etihad, identified that the majority of benefits which accrued to Delta, United and American came from restructuring under Chapter 11 of the US Federal Bankruptcy Code, yielding them at least $35.46 billion, and additional pension fund bailouts totalling $29.4 billion from the US government’s Pension Benefit Guarantee Corporation.
Etihad has consistently denied claims by Delta Air Lines, United Airlines and American Airlines that it received subsidies, and has stated publicly that it has received equity and shareholder loans from its sole shareholder, the government of Abu Dhabi, the largest emirate and capital of the UAE.


Short URL : http://goo.gl/3UjZ1a

You can also read ...

Saudi Arabia Bleeds as Capital Flight Continues
As Saudi Arabia raises the stakes in its dispute with Canada...
 Final Nail in Abraaj Coffin
The Abraaj Group has been put through the ringer in past...
Experts Say China Economy Manageable
Recent external pressures, a general global trade malaise...
Qatar Pledges $15b Investment :      Turkish Lira Weakens 6% on Threat of More US Sanctions
Turkey’s battered lira weakened more than 6% against the...
Europe Should Resist Illegal US Penalties
European countries should take effective steps to counter US...
Indonesia Sets Moderate Growth Goals
Amid rising external pressures, Indonesia’s economy is...
Australia Drought Could Cost $12 Billion
The Reserve Bank of Australia and a new report have warned of...
 Crypto Scams on the Rise in UK
Crypto currency scams are using images of celebrities and...