1st LD Writethru: U.S., Qatar reach understandings on civil aviation

WASHINGTON, Jan. 30 (Xinhua) -- U.S. State Department said Tuesday that the United States and Qatar Monday reached a set of understandings on civil aviation aimed at ensuring a level playing field in the global aviation sector.

Regarding the key issue of financial transparency, related airlines should issue public annual reports in the coming year with financial statements audited externally in accordance with internationally recognized accounting standards, according to the understandings.

Within two years, those airlines should publicly disclose significant new transactions with state-owned enterprises and take steps to ensure that such transactions are based on commercial terms.

The accommodation between the United States and Qatar on aviation comes after American Airlines, Delta Lines and United Airlines spent almost three years pushing the U.S. government to take action against what the big U.S. airlines allege are billions of U.S. dollars in illegal subsidies from Qatar to Qatar Airways and from the United Arab Emirates to Emirates Airline and Etihad Airways.

In the United States, airlines and unions representing pilots and flight attendants praised the agreement as a good sign of transparency.

However, the three Middle Eastern carriers have denied those accusations.

Officials of the two countries plan to meet again within one year to discuss progress.

U.S. Secretary of State Rex Tillerson and his Qatari counterpart Mohammed Al Thani have welcomed the outcome of the U.S.-Qatar Strategic Dialogue held on Tuesday in Washington.

In an announcement, the State Department said the understandings were to address concerns that U.S. carriers have raised regarding government support for Qatar's flagship carrier, Qatar Airways, namely, "subsidized competition and a lack of transparency."

The understandings on civil aviation came in the context of a strategic dialogue between the two countries which is set to begin on Tuesday in the U.S. capital Washington D.C. The two sides will announce a number of agreements following the conclusion of bilateral talks. Enditem