CIAta 

Commerce and Industry Association of New Jersey 

Headquarters: South 61 Paramus Road • Mack-Cali Centre IV • Paramus, New Jersey 07652 

Tel: 201-368-2100 • Fax: 201-368-3438 • www.cianj.org 

Trenton Office: 222 West State Street • Suite 212 • Trenton, NJ 08608 • Tel: 609-695-5900 

May 11,2015 

The Honorable Anthony R. Foxx 

Secretary of Transportation 

US Department of Transportation 

1200 New Jersey Ave SE 

Washington, DC 20590 

Dear Secretary Foxx, 

On behalf of the Commerce and Industry Association of New Jersey and our 950 member businesses, 1 

am writing to express my deep concern over the deterioration of the extremely beneficial Open Skies 

policy brought about by the actions of the governments of Qatar and the United Arab Emirates (UAE). 

According to a recent report, three airlines from Qatar and the UAE- Qatar Airways, Etihad Airways and 

Emirates Airline- have collectively received at least $42 billion in subsidies, interest-free "loans" and 

other unfair benefits from their host governments over the past decade. This heavily subsidized 

competition by the Gulf carriers is severely distorting the international market by contributing to excess 

capacity, which unfairly draws passengers and revenue from U.S. airlines. If U.S.-based carriers like 

Delta, American and United Airlines continue to lose market share, it will lead to service cuts and 

ultimately American job losses. In fact, aviation industry experts estimate that every international 

roundtrip flight lost by a U.S. airline results in the disappearance of 821 well-paying U.S. jobs. 

Since their ratification in the early 1990's, the Open Skies agreements fostered an environment of fair 

and healthy competition be1:ween airlines- improving the quality of service for consumers, increasing 

choice and overall air travel, and stimulating the global economy. However without action by the U.S., 

this competitive balance will continue to be undermined by Qatar and the UAE. Therefore, I am 

requesting that the U.S. government open consultations with the two Gulf States to address these 

troubfing developments to ensure that they adhere to the provisions of the Open Skies policy to which 

they agreed. Additionally, the U.S. should seek a freeze on new capacity from the Gulf carriers while 

these negotiations go forward. Please feel free to contact me if you would like to discuss my concerns 

about the long term, negative impact of the Gulf States host governments carriers' subsidies on the · 

Open Skies agreements. 

Sincerely, 

~LI President 

510-150519-057 New Jersey's business advocate for 85 years 
Commerce and Industry Association of New Jersey 

61 South Paramus Road, Mack-Cali Centre IV 

Paramus, New Jersey 07652 

Visit us at: www.cianj.org 

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The Honorable Anthony R. Foxx 

Secretary of Transportation 

US Department of Transportation 

1200 New Jersey Ave SE 

Washington, DC 20590 

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