Open skies feud between US and Gulf airlines nears end with UAE agreement

The United Arab Emirates agreed to increase financial transparency in its airlines as part of a deal with the U.S. to resolve allegations that two state-owned carriers have unfairly benefited from billions of dollars in government subsidies.

The U.S. and U.A.E. acknowledged that while government support of airlines isn’t unusual, it may “adversely impact competition,” according to a copy of the agreement, which was seen by Bloomberg News. The Persian Gulf country, home of Emirates and Etihad Airways, also committed to issue annual public financial reports under internationally recognized accounting standards.

While the accord doesn’t freeze so-called fifth-freedom flights,