March 20, 2015 

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

Dear Secretaries Kerry and Foxx:

On behalf of the California Chamber of Commerce, I’m writing to you today about an important 

step we can take to level the playing field for American businesses and maintain the 

environment of fair market competition that has been a hallmark of America’s success. 

Over the past decade, Qatar Airways, Etihad Airways and Emirates Airline have received at 

least $42 billion in government subsidies and other unfair benefits in violation of U.S. Open 

Skies policy. The CalChamber is asking that the U.S. government open consultations with 

Qatar and the United Arab Emirates (UAE) in order to address the massive, market-distorting

subsidies that those nations provide their state-owned airlines. 

As you may know, the California Chamber of Commerce is a broad-based nonprofit 

membership organization through which business, industry and agriculture join forces to work 

toward positive action on key issues that affect California’s economic climate.

The organization, established in 1890, is the largest and most broadly based employer 

representative in California. Our members include over 14,000 firms of all kinds and sizes, 

representing three million jobs--one quarter of the state’s private sector workforce, as well as 

450 affiliated local chambers of commerce and 200 trade associations.

The California Chamber supports expansion of international trade and investment, fair and 

equitable market access for California products abroad, and elimination of disincentives that 

impede the international competitiveness of California business.

To be clear, the CalChamber firmly supports Open Skies and recognizes the considerable 

benefits that the policy has brought to U.S. travelers and the U.S. economy. We are not 

seeking to end the agreements with Qatar and the UAE, nor are we raising concerns with 

regard to any of the more than one hundred other Open Skies agreements. The CalChamber is 

requesting consultations, which are provided for within the Open Skies agreements 

themselves. 
The tens of billions of dollars in subsidies are distorting the free market framework established 

by Open Skies and they will ultimately have a negative economic impact here in the United 

States if we allow them to continue. The heavily subsidized competition by the Gulf carriers is

contributing to excess capacity, which draws passengers and revenue from U.S. airlines. If 

U.S.-based airlines continue to lose market share, it will lead to service cuts and ultimately 

American job losses. In fact, according to a white paper released by the Partnership for Open & 

Fair Skies, each route that is lost to Qatar, Etihad or Emirates will result in an average net loss 

of 821 good U.S. jobs. These are jobs that we cannot afford to lose and they should not be lost 

as a result of unfair competition from foreign carriers. 

In response to these very serious concerns, some have stated that American, Delta and United 

must simply do more to compete and offer better services. The CalChamber is familiar with 

these airlines and their services in our region, and can assure you that they can compete with 

any airlines in the world as long as they are competing on an equal playing field and everyone 

is playing by the same set of rules. It is the U.S. government’s responsibility to ensure that is 

the case with regard to Open Skies policy, which is why the CalChamber is asking you to open 

consultations on this issue so that the flow of subsidized capacity into the U.S. market can be 

addressed. 

Thank you for your consideration of this important issue.

Sincerely, 

Allan Zaremberg 

President and CEO 

California Chamber of Commerce

cc:

Senator Dianne Feinstein

Senator Barbara Boxer