From CAPA - the last paragraph says it all
"The state ownership/competitive distortion argument is especially misplaced in the aviation sector given the significant number of airlines that have some degree of state ownership. Many global airlines started as state-owned flag carriers, including the European ?big three? of Air France, British Airways, and Lufthansa. Over time, they have been privatised in varying degrees. For instance, Lufthansa was a state-owned enterprise until 1994, and the French Government continues to own 18.6% of Air France. Globally, state investment in carriers remains common as ownership structures continue to evolve.
The three global airline alliances, whose members reflect a cross-section of international carriers, dramatically illustrate this point. 45% of the members of these alliances have some degree of state ownership. Some are minority government owned like Star member Singapore Airlines, SkyTeam leader Air France and oneworld member Royal Jordanian.
Others are majority government owned such as Star members Air China and Air New Zealand, SkyTeam partners Aeroflot and Aerolineas Argentinas, and oneworld member Malaysia. Yet others are fully government owned and controlled like Star members Ethiopian Airlines and South African Airways and SkyTeam present and future members Vietnam Airlines and Garuda Indonesia.
It is curious, and telling, that one of the most vocal airlines making the state-ownership argument ? Delta ? has numerous state-owned alliance partners yet it does not criticise them, 11 at last count. However, it reserves its state ownership criticism solely for competitors"