True. The real winner is Emirates. They refuel when at the hub in the UAE where they get fuel for next to nothing. That is awesome given fuel is the driving cost of most airlines. When Boeing invents a flying fuel barge, expect them to dominate US routes.
It's a government subsidy just like any other. It's a huge one, and many carriers are complaining about it. They argue Emirates should be charged extra fees for their US service because of unfair competition. I think that argument has merit given US carriers have to pay market price plus taxes on their jet fuel.
Emirates gets huge subsidies because its a goal of Dubai to become a world air hub. It certainly makes sense for them given their geographical position but I don't see how US carriers are supposed to compete with that.
The US Government pays huge subsidies to US airlines that aren't extended to foreign airlines. It also has rules in place that do not allow foreign airlines to fly domestic routes in the US.
Perhaps the UAE(/European/applicable foreign) governments should start charging US carriers an extra fee to combat the subsidies when they land abroad.
I'm sure no-one would complain about that or attempt to use the US government's muscle to fight it...
Cabotage (the right for a foreign flagged carrier to transport passengers/cargo between two points inside a single nation) is quite rare outside of the EU. http://en.wikipedia.org/wiki/Freedoms_of_the_air#Ninth_freed... Those US rules are in no way unusual.
As a current example, the EU decided that airlines operating in Europe would have to pay a carbon tax, to be spent on fighting climate change. The US government made it illegal for american airlines to pay that tax. It's currently suspended by the EU.
