Airline dispute shows power of transparency

The disagreement in the aviation industry highlights the importance of openness

Sir Tim Clark, president of Emirates Airline, speaks during a press conference at the National Press Club in Washington, DC. Brendan Smialowski / AFP Photo

The latest events in the continuing dispute between Gulf and US-based airlines contains an important lesson for the global aviation sector and many other bodies, too. After a 50-page report was presented by US air carriers in January accusing Gulf carriers of breaching the open skies agreement that dictate access to American commercial air space, Emirates chief executive Tim Clark responded this week with a 400-page rebuttal that picks apart each and every one of the allegations being levelled against it.

From supposed unfair state subsidies to perceived anti-competitive business practices, Mr Clark brought the debate into the public view, much to the chagrin of US airlines who appear keen to keep the details of the dispute cloaked in mystery and intrigue. Withholding or cleverly reshaping information is no longer a viable option for businesses that need to build trust to thrive in the aviation industry.

The basic contours of the open skies row have been well rehearsed over the past few months. American legacy carriers are threatened by the emergence of the “big three” Gulf airlines – Emirates, Etihad Airways and Qatar Airways – into the lucrative American aviation market. Arguing that the Gulf airlines have unduly benefited from state subsidies, American carriers and some aviation bodies are attempting to stifle free market competition by calling foul.

Of course, all of this rhetoric from American carriers comes with a hefty bit of revisionism, given the long history of government interventionism in the US, especially in the immediate aftermath of the September 11 attacks. Mr Clark’s approach of putting the entire debate into the public domain demonstrates that after all is said and done, consumers don’t want to deal with companies that shroud their operations with secrecy. The industry as a whole can ill afford for this internal spat to continue for too long.

Mr Clark’s move towards transparency should be welcomed. That a UAE-based company is leading this shift towards openness is to be applauded and provides a powerful example, not just for the aviation industry, but for the all areas of both the public and private sectors. Open and reliable enterprises are the way of commerce in the future. Emirates already recognises this fact, it’s time others outside the airlines business did as well.