6917 Vis t a P ark w a y N o r th, Suit e 1 • West P a l m B each, F l o r i d a 33411

P h o n e: 561.689.9787 • F ax: 561.828.0440 • I n fo@JeriM u o i o. co m • ww w .JeriM u o i o. co m 

### The Honorable Anthony R. Foxx Secretary of Transportation US Department of Transportation

1200 New Jersey Ave SE Washington, DC 20590

The Honorable John F. Kerry Secretary of State US Department of State

2201 C Street NW Washington, DC 20520

The Honorable Penny Pritzker Secretary of Commerce US Department of Co mmerce 1401 Constitution Ave., NW Washington, D.C. 20230

Dear Secretary Kerry, Secretary Pritzker, and Secretary Foxx,

I am writing to bring your attention to developments in the aviation industry that threaten thousands of American jobs and air travel across the country. As Mayor of West Palm Beach, a city with a large tourism industry, I am especially concerned and hope you will take decisive action and stand up for the many thousands of U.S. businesses, communities and families that depend on a heal thy aviation industry.

Over the past decade, Qatar and the United Arab Emirates (UAE)

– both signatories to Open Skies agreements, which liberalized access to U.S. and international markets, while also mandating free and fair competition between airlines

– have funneled at least $42 billion into their state

- owned airlines. This unprecedented level of financial support, coming in the form of interest

- free loans, massive subsidies, land grants and other unfair benefits, was given in direct violation of the bilateral Open Skies agreements signed between the U.S. and the two Gulf States.

The aid from Qatar and the UAE has given their airlines

- Qatar Airways, Etihad Airways and Emirates

Airline

– a massive advantage over their U.S

- based competitors in the luc rative international market. U.S. carriers like American Airlines, Delta Air Lines and United Airlines have been steadily edged out of an increasing amount of international routes. If this continues, American carriers will be forced to shut

down more and more flights, both foreign and domestic, leading to less service for small and mid

- sized6917 Vis t a P ark w a y N o r th, Suit e 1 • West P a l m B each, F l o r i d a 33411

P h o n e: 561.689.9787 • F ax: 561.828.0440 • I n fo@JeriM u o i o. co m • ww w .JeriM u o i o. co m 

### communities as well as the disappearance of thousands of high quality U.S. jobs (approximately 821 per international roundtrip flight lost).

The Gulf carriers hav e argued that their expanded service into the U.S. and international markets has increased overall passenger traffic, providing benefits to airlines and consumers alike. However, a recent report by leading economic consulting firm, Compass Lexecon, has de finitively shown this claim to be false. According to the report, traffic in and out of airports serviced by the Gulf airlines has not increased by any meaningful degree since they began flying there. This proves that the Gulf carriers are simply leverag ing their unfair government subsidies to siphon passengers away from their competitors, while adding nothing to global aviation market in return.

This situation cannot and should not continue. Open Skies agreements contain a provision that allows

either party to open consultations with the other to address any problems that could arise, and the U.S. should exercise this right. In addition to opening negotiations, the Federal government should also seek a freeze on the expansion of new capacity from the G ulf carriers while these consultations go

forward.

Thank you for your time and consideration.

Sincerely,

Jeri Muoio Mayor of West Palm Beach