Emirates airline has countered accusations that it received letters of credit (L/Cs) and subsidies from the Dubai government.

American Airlines, Delta Airlines and United Airlines along with US pilot and airline labour groups said three Gulf airlines - including Emirates - have benefitted unfairly from huge interest-free loans, subsidised airport charges, government protection on fuel losses, and below-market labour costs that are considered unfair subsidies under the World Trade Organisation.

Market manipulation

According to the groups, US$42 billion was given to Dubai's Emirates, Abu Dhabi's Etihad and Qatar Airways to push US carriers out of the lucrative Gulf market, and make competing impossible.

Emirates received USS1.6 billion in L/Cs according to the groups.

The US airlines groups have called on Washington to revisit the bilateral commercial aviation agreements between the US and the two Gulf states.

Robust rebuttal

But Emirates' president, Tim Clark, has issued a terse denial of the accusations.

"Let me tell you that some of the figures in there were factually incorrect - the conclusions that were drawn were incorrect," he said in a statement.

"We will rebut all the things that are said about us. Once we have done that, I expect to be given the benefit of an apology from people who have actually made these allegations," he added.

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