Leading U.S. carriers are now facing a growing and real threat. The
challenge is being thrown by carriers based in the Middle East and Asia.
This is making the American carriers jittery as they come to terms with
the new challenges. America’s leading airlines US Airways and American
Airlines, which have merged finally forming the largest airline in the
world, are finding it tough and emerge winners in the face of global
competition.
Dough Parker, Chief Executive of American Airlines, recently told
mediapersons during an interview that the threat is real. The fact
cannot be discounted that it’s a global business and there’s pertinent
need to compete globally. He said that the two airlines, which have now
merged and will now function under American Airlines Group, are fully
aware of this fact and simply can’t turn blind eye to any global threat.
Parker however said that there should be a level of playing field and
his company cannot be asked or pressurized to compete on different
terms. Parker said that the major challenge is coming from carriers
mostly based in the Middle East, India, Korea, Turkey and elsewhere.
American Airlines Group is not the only one to face the heat. Even
another leading carrier Delta Air Lines is finding the going tough.
Delta Air Lines is battling it out in an Italian court asking it to rein
in new flights between New York and Milan that was launched by Emirates
Airline in October this year. Delta Air Lines has even gone to the
extent of seeking a stop on billions of dollars lending by a U.S. bank
to foreign airlines at below-market rates. One suit has already been
dismissed by the U.S. Court of Appeals, while a federal court in
Washington is yet to consider a pending trial.