Saudi Arabian Airlines wants to codeshare with Kuwait Airways to the United States, connecting travelers from Kuwait to Los Angeles and Washington-Dulles. Typically this sort of application would be approved without too much drama; all the airlines in question hold the necessary authorities and are well established operations. But United Airlines has other ideas. The carrier is asking the US Department of Transportation to delay expansion of Saudia’s access to the US market as a reciprocal penalty for its lack of access into Saudi Arabia.
United submits that it is in the public interest to grant Saudi Arabian Airlines’ application for codeshare authority with Kuwait Airways only when United is able to fully implement its codeshare agreement with Emirates. Accordingly, unless and until GACA issues the written approval for United and Emirates to launch their codeshare, the Department should withhold approval of this application.
-United Airlines regulatory filing
United’s partnership with Emirates, announced in September 2022, is built on delivering easy connections between North America and destinations across Africa, the Middle East, and South Asia. To that end, the carriers have worked to add codeshare operations in many markets, most of which have been approved without incident. Saudi Arabia, however, has proven a challenge for the two carriers.
In January 2023 United applied to codeshare on Emirates flights from Dubai to four Saudi markets. That application was augmented in March 2023 with another ten destinations on the flydubai network. US authorities promptly approved both requests, and Saudi authorities similarly approved the flydubai codeshare application. Indeed, United’s flydubai codeshare is active today.
But United’s plans to codeshare with Emirates remain on ice.
Saudi Arabia’s General Authority of Civil Aviation (GACA) not only did not approve the request, but it appears the country’s authority has ghosted United and Emirates on this issue. In its filing United notes it has not received responses from GACA to inquiries on the status of its codeshare application since 15 May 2023. Nor has Emirates received any response to its queries of the agency.
The lack of codeshare is not preventing United from selling onward connections into Saudi Arabia operated by Emirates. On flights to Riyadh, for example, United sells connections on both Dubai-based partners. But only the flydubai-operated segments carry a United flight number. And that’s frustrating enough that United is now seeking DOT help.
Reciprocity as a bargaining tool
United’s objection is not the first time the carrier has used the DOT approvals process to impede competition. Nor is it the first time Saudia faced such objections.
Two years ago Saudia sought access to the US cargo market, operating from Liege, Belgium to Chicago and New York City. At that time US-based cargo carriers objected, noting they did not have access to add similar routes into Saudi Arabia. Facing those objections Saudia suspended its application, allowing the airline to consult with GACA. Ten weeks later the carrier withdrew the application; apparently those consultations came up short.
United also similarly objected to a codeshare agreement between Philippines Airlines and American Airlines, predicated on its lack of usable slots in Manila. After four-ish years of negotiations United secured slots for its Manila service. It immediately withdrew its objections over the competing codeshare operations and the DOT quickly approved that request.
Which is not to say that the DOT will absolutely heed United’s request. But given the Agency’s history on such applications, it seems likely this one will at least be delayed.
UPDATE – 19 January 16:30 EST
As of Friday afternoon, in the face of United’s request for deferral of the request, Saudia withdrew the application.
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