The United States and the United Arab Emirates (UAE) have signed a Record of Discussion aimed at resolving a longterm dispute between the US3 (American Airlines, Delta Air Lines, and United Airlines) and Emirates and Etihad Airways concerning the the latters' manner of operations.

The US3 group of carriers has long accused the ME3 group (which includes Qatar Airways) of unfairly benefitting from both direct and indirect state subsidization which they then use to distort the global travel market by artificially undercutting fares both on routes to/from their own countries as well as those between others - 5th freedom flights.

Following months of talks with the Trump administration, a statement issued by the UAE's Washington embassy said that under the accord, Emirates and Etihad have pledged to improve the transparency of their respective operations by publishing annual financial statements “consistent with internationally recognized accounting standards.” Qatar Airways made a similar pledge earlier this year.

The agreement also contains text wherein both sides have agreed that "government support, in whatever form, may adversely impact competition in providing international air transportation.”

On the issue of 5th Freedom flights, the UAE has stated that it does not, at present, have any further plans to add such flights to the United States. Emirates is the only carrier, at present, that runs 5th freedom services - Dubai International to each of New York Newark (via Athens) and New York JFK (via Milan Malpensa). According to the Associated Press, the US3 had collectively sought a binding commitment that neither Emirati carrier would offer any more such flights

"The UAE is very pleased that our understanding with the US preserves all of the benefits of Open Skies for travelers, airlines, communities and aerospace companies in both countries and around the world," the UAE Ambassador to the US, Yousef Al Otaiba, said in a statement. "All the terms and provisions of the Air Transport Agreement including Fifth Freedom rights remain fully in place, with UAE and US airlines free to continue to add and adjust routes and services."

In the Record of Discussion, the UAE maintained that the "UAE and its designated carriers are and have been at all times in full compliance with the Agreement." Aside from allowing Emirates and Etihad broader access to the US market, the Open Skies agreement also benefits US carrier FedEx Express (FX, Memphis International) which uses 5th Freedom rights for flights to/from its Dubai International hub.

In return, the UAE says it also raised concerns about "certain US policies and practices that may adversely impact competition for international air services". As such, in the Record of Discussions, both countries marked their intentions to promote best practices relating to marketplace participation.