May 20, 2015 

The Honorable Anthony R. Foxx 

Secretary of Transportation 

US Department of Transportation 

1200 New Jersey Avenue SE 

Washington, DC 20590 

The Honorable John F. Kerry 

Secretary of State 

US Department of State 

2201 C Street NW 

Washington, DC 20520 

The Honorable Penny Priztker 

Secretary of Commerce 

US Department of Commerce 

1401 Constitution Avenue NW 

Washington, DC 20230 

Dear Secretaries Fox, Kerry and Pritzker: 

On behalf of the Minnesota Chamber of Commerce, I am writing to you today to express our concerns regarding 

information that we have recently received relating to significant subsidies that Qatar Airways, Etihad Airways 

and Emirates Airline have received from their home governments. These subsidies, estimated to be $42 billion 

over the past 10 years, are a violation of the Open Skies agreements that the United States has with Qatar and 

the United Arab Emirates ("UAE") and has created an uneven playing field. If allowed to continue, these 

subsidies could result in American carriers being forced to shut down previously profitable routes and putting 

thousands of well-paying U.S. jobs at risk. This ultimately could lead to the loss of critical air service at the 

Minneapolis/St. Paul International Airport and jobs throughout our region. 

Home to a major hub of Delta Air Lines, Minneapolis/St. Paul International Airport provides a vital link between 

Minnesota and the world. Delta operates more than 400 flights per day to over 130 domestic and international 

destinations making the airline an integral part of Minnesota's economic development. The strong level of air 

service that our region enjoys has helped fuel Minnesota's economic growth and put our state on the global 

map. 

Since their inception in 1992, the Open Skies agreements have brought significant benefits to the State of 

Minnesota and the U.S. economy by establishing a level playing field and clear guidelines for international air 

travel. While the MN Chamber of Commerce is not seeking an end to the agreements with Qatar or the UAE, we 

are concerned about the issues that have been raised. Some have argued that Qatar, Etihad and Emirates are 

stimulating economic growth in the United States by driving more air traffic and tourism to our cities and 

www.mnchamber.com 
therefore the massive subsidies they receive should be overlooked. However, nothing could be further from the 

truth. With the subsidies that they are receiving, these three airlines are taking over routes that are not 

profitable (in fact they lose money) and most of their planes operate half empty. Since 2008, nearly 11,000 daily 

seats have been added between the United States and Abu Dhabi, Dubai and Doha- 95% of those seats by these 

Gulf Carriers. Yet over the same period, the average daily bookings between the U.S. and the three Gulf hubs 

have only increased by 85 passengers a day. Only 85 passengers but 11,000 seats: that's not stimulating traffic 

and tourism, its dumping seats in a marketplace in anticipation of exploiting their inflated market share down 

the road. 

If this issue of unfair competition is not addressed, Delta's hub in Minnesota, and other airline hubs across the 

country, could be significantly impacted. U.S. carriers may be forced to reduce or terminate their own services 

on international routes, or forego entry on routes they would otherwise have entered. In addition, the loss of 

international routes has the potential to reduce passenger flow on domestic routes putting those routes in 

jeopardy as well. Any of these actions would have a significantly negative impact on the State of Minnesota. 

Open Skies agreements only work if all of the parties are playing by the same rules. Please help to keep all Open 

Skies agreements open and fair by addressing the subsidies that are being unfairly provided to these three 

carriers. 

Sincerely, 

~ ~ 

William A. Blazar 

Interim President 

EW