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## THE SENATE

The Honorable Anthony R. Foxx Secretary ofT ransportation US Department ofTransportation 1200 New Jersey Ave SE Washington, DC 20590 The Honorable John F. Kerry Secretary ofState US Department ofState 2201 C Street NW Washington, DC 20520 Secretary of State Kerry & Secretary ofTransportation Foxx, As the Obama Administration reviews the evidence provided by the U.S. airlines ofthe massive government subsidies received by state-owned carriers from the Persian Gulf , we write to urge you to begin Open Skies consultations with Qatar and the United Arab Emirates and freeze all new routes from their respective government-owned airlines while consultations are taking place. There is much at stake for the U.S. airline industry, the state of Michigan, and the nation for the Administration given the unfair competition being waged by Qatar Airways , Etihad Airways and Emirates Airline against our carriers. American Airlines, Delta Air Lines and United Airlines have thoroughly documented the more than $42 billion in subsidies and other unfair government benefits that have been funneled to the Gulfcarriers over the last decade. The subsidies fi.mneled by Qatar and the UAE to their state-owned airlines are in clear violation ofour Open Skies policy, and the amount is likely much higher, when considering subsidies provided before and after the 2004-2014 timeframe. The airline industry is critical to the nation ' s economy: It drives nearly $1.5 trillion in U.S. economic activity, it directly employs 580,000 Americans, and it supports more than 11 million jobs nationwide. Delta Air Lines alone employs more than 7 ,500 people at Detroit Metropolitan Airport and generates over $210 million in annual tax revenue. The commercial airline industry as a whole provides an estimated economic impact on our state of$17.6 billion.



# s 10-150513-008If Delta and the other major U.S. carriers are forced to cut back on international routes due to the unfair competition, cities with major airports like Detroit and throughout Michigan will feel the pain. As U.S. airlines are then forced to also trim domestic routes, the pain will spread to cities and towns with small and mid-sized airports. Given that every daily international roundtrip flight lost by U.S. airlines equates to more than 800 U.S. jobs lost, we know that the pain would be severe. Delta and its regional carrier Delta Connection employ I0,000 people statewide in Michigan. We want that number to rise, not drop, in the years to come but the Gulfcarriers' rapid, subsidy-fueled expansion into the U.S. market

- an expansion that is not creating any new passenger demand or stimulating U.S. tourism- is tlu·eatening airline industryjobs here in Michigan and across the U.S.
The Open Skies agreements that Qatar and the UAE signed with us give you the right to call for consultations and hold offon any new routes from their airlines. On behalfof those we represent, we ask the Administration exercise that right and address the Gulf airlines ' massive and unfair subsidies. Sincerely,

Senate Majority Leader Michigan Senate

nanich te Democratic Leader



### 510-150513-008 Kevin Cotter Speaker ofthe House Michigan House ofRepresentatives

Democratic Leader Michigan House of RepresentativesTHE SENATE STATE OF MICHIGAN P

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. BOX 30036 LANS ING , 48909
-7536



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The Honorable Anthony R. Foxx Secretary of Transpo rtation US Department of Transpo rtation 1200 New Jersey Ave SE Washington, DC 20590 neopost/f FIRST CLASS 'IAIL 05/07/2015

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