RAHM EMANUEL MAYOR

The Honorable John Kerry Secretary U.S. Department ofState 2201 C StreetN.W. Washington, D.C. 20520 OFFICE OF THE MAYOR CITY OF CHICAGO

May 7, 2015

The Honorable Anthony Foxx Secretary U.S. Department ofTransportation 1200NewJersey Avenue S.E. Washington, D.C. 20590 Dear Secretaries Kerry, Foxx and Pritzker: The Honorable PennyPritzker Secretary U.S. DepartmentofCommerce 1401 ConstitutionAvenue N.W. Washington, D.C. 20230

I am writing to express my concerns regarding the recent reports that Qatar Airways, Etihad Airways and Emirates Airways are in violation ofthe Open Skies agreements with the United States. Inthe past, I welcomed the expansion ofQatar and Emirates to Chicago's O'Hare International Airport and while Icontinue to encourage international airlines to bring their flights and passengers to our city, I have serious concerns about the unfair government subsidies and benefits the Middle East carriershavereceived andthe impact onthe U.S. airlines. I strongly believe that every airline flying into O'Hare mustplay by the same set ofrules, but currently, that's not what is happening. It'sbeenreported that the Gulfcarriers have received over $42 billion in subsidies and other unfair benefits from their governments
- subsidies that I knowyou are aware American carriers do notreceive from our government. That foreign government funding means they aren't accountable to market forces. It has allowed these Gulfcarriers to grow at an astounding rate, with an expanding global presence and a substantial cost advantage over U.S. carriers. They do not offer supply in the face ofdemand, and as a result, they are able to draw passengers and revenue away from U.S. carriers. Importantly, that funding also puts them in violation ofthe Open Skies policies that require open and fair competition. It's imperative that the U.S. government stands up to protect the domestic aviation industry, which is so important to our economy and the livelihood ofhundreds ofthousands of workers across the nation. The three major U.S. airlines employ over 25,000 people in the Chicago area, while the Gulfcarriers employ less than 50. Standing by American carriers means standingby hardworking Americans.



# s10-150508-012I strongly urge you to open consultations with Qatar and the United Arab Emirates to address this flow ofsubsidized flights into the United States. Additionally, while the discussions are ongoing, I think it's important that a freeze is put in place on new routes by the Middle East carriers. We cannot let what happened to European markets and airports happen here in America. International service in Europe has plateaued inthe last decade, while the airports in Dubai, Abu Dhabi, and Qatar see huge international passenger and service growth, despite the lack of a robust domestic market. France and Germany have already frozen Gulfcarrier traffic rights, and the EuropeanCommissionhas asked the United Kingdom to do the same. Left unchecked, these disruptions to the international economy will harm the U.S. aviation industry, leading to service reductions in important hub markets like Chicago and a loss ofgood Americanjobs. As the burden ofcompeting in an unfair market forces U.S. carriers to cut international routes, the airlines will eventually haveto make sacrifices here at home. We must open consultations with Qatar and the United Arab Emirates to protect fair and equal competitionin our skies. Sincerely,
Mayor



# s10-150508-012