# 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 gove rnments over the past decade

. Thi s 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 ag reements fo s tered an environment of fair and healthy competition be1:ween airlines- improving the quality of service fo r 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 co n cerns 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 

### yearsCommerce and Industry Association of New Jersey 61 South Paramus Road , Mack-Cali Centre IV Paramus , New Jersey 07652



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