## Kentucky Chamber Uniting Business. Advancing Kent ucky. May 5, 2015 The Honorable Anthony R. Foxx Secretary ofTransportation US Department ofTransportation 1200 New Jersey Ave SE Washington, DC 20590 The Honorable John F. Kerry Secretary ofState US Department ofState 2201 CStreet NW Washington, DC 20520 The Honorable Mitch McConnell Majority Leader United States Senate 317 Russell Senate Office' Building Washington, DC 20510 Dear Secretary Kerry, Secretary Foxx and Senator McConnell, On behalf ofthe Kentucky Chamber of Commerce I write to express our deep concern over serious violations ofOpen Skies agreements committed by the governments of Qatar and the United Arab Emirates, and their state-owned airlines. In blatant disregard for Open Skies policy, both GulfStates are funneling tens of billions of dollars in subsidies and other unfair handouts into three government owned airlines: Emirates Airline, Etihad Airways and Qatar Airways. If allowed to continue, this unprecedented level of financial backing will significantly distort the international market and adversely affect the many American and Kentucky businesses that rely on a healthy aviation industry. Over the past ten years, the three Gulf carriers have received at least $42 billion in subsidies and benefits from their host states
. This has allowed Qatar, Etihad and Emirates to dramatically expand their fleets and lower their rates below what their competitors can match, driving U.S. carriers like American Airlines, Delta Air Lines and United Airlines out ofonce profitable international routes. Since long haul international passengers connect to and from domestic flights at U.S. carrier hubs, like Cincinnati/Northern Kentucky International (CVG), discontinued international service has a severe negative spillover effect on the domestic service of U
.S
. carriers
. Airline experts estimate that every international roundtrip flight lost by a U
.S. airline results in a net loss of 821 high quality American jobs, notjust in aviation, but in the many industries that support U.S. air travel.**~** .. J • • • !I!
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### 510-150511-021 d Frankfort, KY 40601 phone 502-695-4700 fax 502-695-5051 www.kychamber.comOpen Skies Agreements Page2 Major airports like CVG play a vital role in the**community~** serving as regional hubs for commerce and economic development. Without any**action~** the effects ofthis uneven playing field will radiate outward from major airports across the country and threaten businesses large and small throughout the U.S. As an organization designed to foster economic growth and**competition~** the Kentucky Chamber of Commerce is requesting that the U.S. government open consultations with Qatar and the UAE to address these violations ofOpen Skies**policy~** as provided in the agreements themselves. While these negotiations go**forward~** we also hope the government will seek a moratorium on new capacity from the Gulf carriers to the U.S.**Sincerely~** Bryan Sunderland Senior Vice**President~** Public Affairs



## 510-150511-021

## Kentucky Chamber Umting Busmess. Advancing Kentucky. 464 Chenault Road Frankfort, KY 40601



## 5 10-150511-021 The Honorable Anthony R. Foxx Secreta ry of Transportation US Department of Transportation 1200 New Jersey Ave SE Washington, DC 20590 

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