09/02/2017 World Business Report


09/02/2017

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Will open skies stay open under President Trump?

:00:07.:00:18.

US airline bosses take their grievances to the White House today.

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Top of the list, their fast-growing rivals from the Gulf.

:00:23.:00:29.

Could the President's love of Twitter stop the rot

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Some of you are going, what is he doing, it isn't even Friday? I will

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tell you what, give me a minute and I will give you a snapshot of the

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world of business and money. We start in Washington,

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where the bosses of America's top airlines and airports are due

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to meet President Trump There are some major issues

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on the table that could affect As we know from his inauguration

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speech, Mr Trump said That could mean a major

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boost for Boeing. If he leans on US airlines

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to buy from them. European rival Airbus also operates

:01:38.:01:40.

factories in the US, and buys billions of dollars worth

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of US components, like engines. It claims to support

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245,000 US jobs. Then there's the issue of foreign

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airlines operating in the US. This one, Norwegian,

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was given a foreign carrier licence, allowing them to expand their routes

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to and from the US, as one of the last acts of

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the Obama administration. This caused howls of protest from US

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airlines and unions. Norwegian says its creating at least

:02:15.:02:22.

150 new US jobs and has ordered more than $18 billion worth

:02:23.:02:27.

of planes from Boeing. So, what about the whole

:02:28.:02:33.

question of open skies, the deals that mean countries

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open their routes to each other? The US currently has 120

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open skies agreements. US airline bosses are particularly

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unhappy about the expansion of Emirates, Etihad Airways,

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and Qatar Airways in the US. Last week they wrote

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to the government claiming Gulf carriers have received $50 billion

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in handouts from their governments over the past decade,

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something the Gulf airlines deny. The President of Emirates has long

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argued that an attack on their business by Washington

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would only damage the US economy. It is far too important for the US

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economy for multiple reasons - for the activities of the Gulf carriers

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to be cut back, because once you do that and you close the open skies

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that you have today it has enormous ramifications. The US economy would

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be severely affected by a closure, a shutting down of the open skies

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arrangement, which has manifestly produced huge amounts of wealth for

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Aerospace, Boeing, General Electric as well as everything else.

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You and I know him quite well, Tim Clark, he is a big figure in the

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industry. John Strickland, director of JLS

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Consulting, joins me now. Thank you for coming in at this

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horrid hour. You always do it, you need a medal. So, Tim Clark has a

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point, doesn't he, and it is interesting because he is the boss

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of the airline Emirates which is the one the US airlines are gunning for,

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are they? Yes, the big airlines put in a complaint about the Gulf

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carriers. They wanted to go to Congress. They made allegations of

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unfair competition, these carriers from the Gulf came into the market,

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and the document originally produced, which was about 50 pages,

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the three Gulf carriers issued rebuttals into the hundreds of

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pages, evidence countering the arguments, these carriers have

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increased their services, the boss of Kata Airways told me last year, I

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have at world US mayors in my office imploring me to start services to

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the US -- Qatar Airways. The key beyond the end services and what it

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means for access to major US cities which of course is all part of the

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economy and job creation and so on is these guys by large numbers of

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Boeing aircraft and a massive customers for Boeing. If there is

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any poster boy for jobs it is Boeing. You are right that all three

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are fast-growing and Emirates has been around since the 1980s but they

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are all fast-growing and they purchase a lot of aircraft, they

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seem to have the money compare to others, but is it at a point where

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the worry is if President Trump says, OK, you know what, I am

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scrubbing the open skies with the UAE and the Gulf regions, they will

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save goodbye to Boeing and go to Airbus. With the buyback and jobs

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for America, the aerospace industry, not only Boeing, sub suppliers and

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engine manufacturers, are a massive part of the economy and support jobs

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at home. We don't have a unified view in the airline community. The

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D3 might lobby against Gulf carriers but others like Federal Express have

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the reverse ID and they say the open skies agreements which allow the

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Allied in our positive -- idea. They are positive for job creation. The

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message is not even united in the industry. And the irony of it is

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open skies, which many countries use, is a US concept. I have to ask,

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if President Trump listens to airline bosses and rips up the open

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skies with parts of the Gulf area, that will have a huge ramifications

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for the global aviation industry. It could have a massive effect because

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the US is the origin of these open skies agreement and they have been

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seen as positive to global trade, positive to economic development in

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tourism and airlines from the US and other countries, in whichever

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partnership of open skies the US has formed, have developed air services

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in part of a 21st-century economy. Aviation is so fundamental not only

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directly for what it creates but how it supports and catalyses economic

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growth more broadly so it will be a very interesting meeting today.

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Indeed, we are going to be watching it closely. Thank you for coming in.

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We appreciate it. Let's move on quickly.

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It has been struggling to grow its user base and to make

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Those are the main reasons why Twitter shares are down by almost

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But could the election of avid Twitter user Donald Trump be giving

:07:41.:07:45.

Analysts have been pointing out a rise in people

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They say that could help Twitter finally find a buyer.

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James Erskine is director of the online marketing company

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It is good to see you and thank you for coming in. Let me ask you,

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Twitter, you know, we are here again, Facebook when it went public

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with were saying the same thing, it has to learn how to make money, it

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has to learn how to make money from the users and it has done that.

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Twitter still hasn't done that. It hasn't, no, and there are a number

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of reasons we see for that, social circle, it is our job to see how

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people engage with content across lots of different social media

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platforms and Twitter, we are starting to see people see authentic

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content from real people, and slowly they are starting to engage, so

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Twitter before was having a problem with people using it more like a

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newsfeed rather than a social network. One thing you need from a

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social network is engage in it. Things to engage with. I have to

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ask, talking of engaging, President Trump has been very engaged on

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Twitter. Do you think that could actually give the company a boost?

:09:08.:09:12.

You know, I think it could not necessarily because of him

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specifically but more what it is indicative of, so fierce political

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discourse and debate amplified in an online environment. We also saw it

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with Brexit as well, Twitter have lots and lots of opinions around the

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key political issues and I suppose the next step is what else people

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can debate, so, does it go beyond politics, to other niche communities

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where they can have those back and forth opinions? OK, will they find a

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buyer, yes or no, I have to go, will they? Eventually, yes, it is all

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about the content on Twitter to allow them to do that. We appreciate

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your time, short and sweet, thank you very much, and I will be back to

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look at the papers from around the world. Follow me on Twitter. I will

:10:00.:10:01.

see you shortly. A new law designed to help protect

:10:02.:10:10.

people in England from so called revenge evictions by rogue

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landlords isn't working. That's according to senior MPs

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and housing lawyers.

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