International Coalition of 

Tourism Partners

PO Box 208

Haleiwa, HI 96712-0208

Phone: +1-808-566-9900 Fax: +1 (808) 356-0196

E-Mail: member@ictp.travel Web : www.ictp.travel

The Honorable John F. Kerry

Secretary of State

U.S. Department of State

2201 C Street, NW

Washington, DC 20520

Haleiwa, May 26, 2015

Re: Claims Raised about State-Owned Airlines in Qatar and the UAE

DOT-OST-2015-0082-0049

Hon. Secretary Kerry,

I may just be one of the few people left in the industry who was actively engaged in the 

US and EU deregulation and open skies strategy. And a little bit of historical 

perspective might just show how hypocritical and self-serving the US Carrier and Union 

initiatives are.

I was Head of Government Affairs at IATA in those days when the US government and 

its airlines embarked on their open skies strategy in the late 1970?s? using every 

diplomatic and commercial avenue to mount a crusade on what they called the 

protectionist Bermuda based bilateral system & the cartelistic IATA tariff system. 

At first the aviation community lined up against them and we were in the front row of 

the battle arguing the case for progressive change, moderation, the comity of nations 

and the agreements they had painstakingly negotiated for three decades. We debated 

in national and international regulatory fora and public conferences, we hired K street 

lawyers and consultants. We argued that the US had a huge protected domestic 

market base, chapter 11 and restrictive ownership shelters that gave it a competitive 

advantage. We pointed out that airlines of smaller states wouldn’t be capable of 

competing. We fought the legal attacks point by point.
2

But slowly we lost the battle as the US put more and more bilateral pressure and 

concessions into play. As they argued the open skies case for passengers and for 

communities as they extolled the trade benefits. As they picked up strategic partners in 

Singapore, Amsterdam, Tel Aviv, Amman and London or picked off weak sisters with 

deals or political pressures.

And they were smart. After 10 years the EU started to move in the same direction and 

its de Kroo Commission (on which I served, as President of WTTC), called for a clear 

target based strategy to open market entry, price and capacity in the same direction. 

Competition, regardless of flag, became the order of the day and open skies the 

dominant regulatory regime.

But most important was the fact that it became obvious that the US were right to 

push vigorously for more competition because customers like low fares, more 

choice of services and what they called more price/quality options, and airlines 

need that push to force them out of cozy oligopolies. But above all the world 

community with its many socio-economic challenges needs a strong and 

expanding Travelism (Travel & Tourism) system to boost trade, jobs and 

investment flows.

Then the international competitors got wise, took advantage of their new freedoms and 

began to create alliances, hubs and improved products. They accepted the challenges 

of open skies - often because they had no alternatives - and in some cases like the 

UAE, nation states began to capitalize on their global position in international aviation 

passenger flows and the global economic pivot to Asia. They invested in their airlines 

and airports. Their carriers bought the most modern aircraft with the lowest pollution 

levels. And above all they delivered the best service in the skies and on the ground as 

a core product.

The US carriers with their massive, commoditized, totally protected domestic market 

generally failed to respond adequately to the changing competitive international service 

and quality dynamics. Inflight and on the ground they did not meet the strategic 

investment, product and human resource innovations of foreign competitors.

So now, the champions of open competition and the choice of the market turned 180 

degrees and launched their protectionist legal barrage. And careless of passenger, 

destination or societal interest they want the rules of the game changed again. 

Because the competitive heat in the kitchen they designed, built and pushed around 

the globe just got too hot to handle. 
3

A read of the claims and responses makes it very clear that open skies is a better bet 

for the world community and for passengers, as well as the US economy and the 

country that has successfully sold this now globally recognized concept to the world is 

faced with two choices ? Be bold and stay with your vision or be weak - because some 

of your airlines don’t like the consequences - and sink into the abyss of protectionism.

This is no real choice - in fact if the US wants to maintain its aviation leadership

role, it should take a serious look at further liberalizing its ownership and control 

provisions, as well as its protected massive domestic base to bring more foreign 

investment and innovation, to boost its aviation, tourism and trade marketplace.

And if it really wants to be a strategic leader in a world where green growth will 

become the new norm - because we need growth for inclusive socio-economics 

and green to fight the existential threat of climate change. It should look at 

innovative regulatory frameworks that create better market opportunity for 

carriers, domestic or international, who operate with the lowest carbon footprint.

Geoffrey H. Lipman

President International Coalition of Tourism Partners