11:40 AM EDT, 05/20/2015 (MT Newswires) -- U.S. airline stocks fell sharply Wednesday after Abu Dhabi-based The National cited American Airlines (AAL) CEO Doug Parker who said federal regulators turned down a request to freeze expansion in the U.S. by three of the biggest Gulf Carriers.
The request was made by American Airlines, Delta Air Lines (DAL) and United Continental (UAL). U.S. regulators rejected the request as they don't want to take any action while they review whether Emirates, Qatar Airways and Etihad Airways are unfairly subsidised by their governments.
American Airlines, Delta and United Continental claimed that the three Gulf Carriers received over $40 billion in government subsidies and said that the Gulf carriers are adding as many flights as possible while officials continue their review.
Emirates, Qatar and Etihad Airways repeatedly denied that they've received local government subsidies.