Hawaii Tourism Association

PO Box 208, Haleiwa, HI 96712-0208

Phone: +1-808-591-6100 Fax: +1 (808) 356-0196

E-Mail: aloha@hawaiitourismassociation.com 

Web : www.hawaiitourismassociation.com

Docket ID: DOT-OST-2015-0082

Agency: Department of Transportation

May 26, 2015

The Honorable John F. Kerry

Secretary of State

U.S. Department of State

2201 C Street, NW

Washington, DC 20520

The Honorable Anthony Foxx

Secretary of Transportation

U.S. Department of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590

The Honorable Penny S. Pritzker

Secretary of Commerce

U.S. Department of Commerce

1401 Constitution Avenue, NW

Washington, DC 20230

CC:

Senator Brian Schatz

Senator Mazie Hirono

Representative Tulsi Gabbard

Representative Mark Takai

Dear Secretary Kerry, Secretary Foxx, and Secretary Pritzker,

My name is Juergen T Steinmetz and I am the president of the Hawaii Tourism Association (HITA), a 

private not-for-profit organization based in Honolulu. HITA exists to encourage Hawaii’s official state 

tourism marketing organization, the Hawaii Tourism Authority, to recognize emerging “non-priority”

source markets for Hawaii such as India, the UAE, Africa, etc. I represent the Hawaii tourism industry 

through HITA on the Political Outreach Steering Committee for Brand USA in Washington.
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I am also the publisher of eTurboNews (eTN), a flagship global news service for the travel and 

tourism industry based in Hawaii. eTN is a daily bulletin of reports written by a global team of 

contributing editors, writers, guest analysts and occasional correspondents, focused on the global 

travel and tourism industry. eTN content includes news about aviation, transportation, events, 

corporate, people, market trends, political and legislative developments.

I write to express my concerns regarding the current debate about the “Open Skies” policies as 

established by the US Department of Transportation which involves airlines based in the United 

States, the UAE and Qatar. 

Briefly, Open Skies is an international policy concept that has liberalized the rules and regulations of 

the international aviation industry in order to create a free-market environment for the airline industry 

and to “liberalize the rules for international aviation markets and minimize government intervention as 

it applies to passenger, cargo, and combination air transportation as well as scheduled and charter 

services.” Open Skies has indeed enhanced connectivity for many regional US points that would 

otherwise have no direct flights to and from the Middle East or Europe. These long-established 

international agreements have been a boon to many US markets including Hawaii. 

Of equal importance, Open Skies has benefitted many US businesses. As but one example, Abu 

Dhabi-based Etihad Airways has become a major client of General Electric, Sabre Departure Control 

Systems and Boeing -- and they are doing business with many American financial institutions. Etihad 

Airways are in the process of acquiring 71 Boeing Dreamliners which will make them the largest 

Dreamliner fleet in the entire world. Because of Open Skies, this single carrier delivers nearly 200,000 

passengers to Delta, United, Jetblue and American airlines. Because of Etihad Airways investment in 

the latest equipment, they will soon be operating with the lowest carbon footprint of virtually any 

airline in the world.

The real story behind this current dispute lies in the fact that our US-based airlines have failed to 

deliver the high level of passenger service that their international competition now routinely delivers. 

Their competition invested in their airports, bought the most modern aircraft with the lowest pollution 

levels and they have delivered the best service in the skies and on the ground.

The following quotes are from Professor Geoffrey Lipman. Professor Lipman was the head of 

Government Affairs for the International Airline Transport Association; was the first President of the 

World Travel and Tourism Council; served as Assistant Secretary General to the United Nations 

World Tourism Organization, and he is currently the President of the Hawaii, Brussels, Bali and 

Seychelles-based International Coalition of Tourism Partners (ICTP). 

“Unfortunately, our 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.” 

“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 
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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 [the US] 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 those carriers, domestic or international, who operate with the lowest carbon footprint.”

For Hawaii travel and tourism is our largest international export. Tourism is also our largest creator of 

jobs. Open Sky agreements contribute to our competiveness on a global scale and opens new 

markets and opportunities.

I would even go a step further to instead of going after the Gulf airline connectors; the United States 

should continue open the Skies on its domestic market, specially for our Island State. 

Hopefully then, the U.S. Consumer could get access to what passes off even remotely as high 

quality, and what the rest of the world, especially Asia, takes for granted. 

The open Sky agreement between the United States, Qatar and the UAE should not be touched. The 

issue is not about subsidies on one side or the other; it’s about competitiveness, quality service, 

consumer choices and jobs. 

Thank you for your kind consideration of my perspective.

Sincerely,

Juergen T Steinmetz

President Hawaii Tourism Association