### BILL STOUDT Gregg County Judge

April 28, 2015
The Honorable Anthony R
. Foxx Secretary of Transportation U
. S
. Department of Transportation 1200 New Jersey Avenue SE Washington, DC 20590 Dear Secretaries Foxx and Kerry : (903) 23 6- 8420 (9 03) 237-2 699 Facs imile 

### 101 E. Methvin St. , Suit e 300 L

on gv iew, Texas 75601

The Honorable John F. Kerry Secretary of State U.S
. Department of State 2201 C Street NW Washington, DC 20520

Earlier this month, American Airlines, Delta Airlines, and United Airlines, as well as the largest unions in the airline industry, announced a partnership to encourage the U
. S
. Government to level the playing field for fair competition with the government-subsidized, state-owned airlines of Qatar and the United Arab Emirates (UAE)
. Fueled by massive subsidies, these governments' carriers have been expanding at a rapid pace in order to divert traffic through their own hubs. This subsidized expansion is distorting the international aviation marketplace
. Importantly, this unfair competition**i~** threatening the airline routes and jobs that we depend on in Gregg County, Te xas and acro ss the country. The state-owned Gulf airlines- Qatar Airways, Etihad Ai;ways, and Emirates Airlines- have collectively received at least $42 billion dollars in government subsidies and other unfair benefits over. the last ten years. The economic development strategies that their governments are pursuing through subsidization contradict Open Skies policy, which is predicated on fair competition , undistorted by government actions, including subsidie s. Open Skies policies have allowed for greater access and growth of the aviation industry in the United States, to the benefit of U. S. travelers and the U
. S
. economy, but these tactics by the Gulf airlines and their state sponsors have created an un-level playing field
. If we allow this to continue, citizens of Gregg County, Texas will ultimately lose out. Because these Gulf carriers are highly subsidized , they have grown at astounding rates, rapidly expanding their fleets and routes untethered to commercial realities (profits)
. If we stand by and allow this unfair competition to continue, the service to small and mid-sized communities that we depend on will suffer as our domestic airlines are forced to curtail flights
. If our U. S. airlines are pushed off international routes and lose market share t o the government-owned Gulf airlines, it will mean American job losses. Every international roundtrip flight that is lost results in an average net loss of 821 good U.S. job- think of all the pilots, flight attendants, ma i ntenance workers, baggage crew, ticketing agents, and others that are involved in a single overseas route. They and others whose livelihoods depend on a healthy U. S. airline industry are the people who have the most to lose if this issue is not addressed. ·



# s 10-150505-033U. S. Open Skies policy has served the citizens of Gregg County, Texas well. Please help to keep all Open Skies agreements open and fair by addressing the subsidies that are being provided to these three carriers.

# 7~~~ st:tJudt Gregg County Judge Cc: U.S. Senator John Cornyn #517 Hart Senate Building Washington, D. C. 20510 U. S. Congressman Louie Gohmert 2440 House Office Building Washington, D. C. 20515 U.S. Senator Ted Cruz Dirksen Senate Building, #185 Washington, D. C. 20510



# s 10-150505-033

### BILL STOUDT Gregg Co unty Judge 101 E. Methvin S t., S uite 300 Longview, Texas 7560 I



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