Today, Chicago Mayor Rahm Emanuel sent a letter urging the Obama administration to address the $42 billion in unfair subsidies Qatar and the United Arab Emirates (UAE) have funneled into their state-owned airlines over the past decade. In his letter, Mayor Emanuel asked Secretary of State John Kerry, Secretary of Transportation Anthony Foxx and Secretary of Commerce Penny Pritzker to seek consultations with Qatar and the UAE to resolve these violations of Open Skies policies and to request a freeze on additional flights by the Gulf carriers.

“We applaud Mayor Emanuel for standing up for American workers and asking the Obama administration to keep our skies open and competitive,” said Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies. “As a tireless advocate for the people of Chicago, Mayor Emanuel understands the impact these unfair government subsidies have on aviation service in and out of Chicago and the jobs of 25,000 Chicagoans employed by United, American and Delta airlines. It is our hope that the Obama administration will take the concerns raised by Mayor Emanuel and the hundreds of other local and federal officials to heart and seek consultations with Qatar and the UAE.”

In his letter, Mayor Emanuel expresses concern about the impact on the U.S. aviation industry, noting potential service reductions and job cuts if the Administration fails to act. In addition, the mayor requests a freeze on new routes from the Middle East carriers until the issue of Qatar and the UAE’s subsidies is addressed.

The full text of Mayor Emanuel’s letter is below and a signed copy of the letter is available here.

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Dear Secretaries Kerry, Foxx and Pritzker,

I am writing to express my concerns regarding the recent reports that Qatar Airways, Etihad Airways and Emirates Airways are in violation of the Open Skies agreements with the United States. In the past, I welcomed the expansion of Qatar and Emirates to Chicago’s O’Hare International Airport and while I continue to encourage international airlines to bring their flights and passengers to our city, I have serious concerns about the unfair government subsidies and benefits the Middle East carriers have received and the impact on the U.S. airlines.

I strongly believe that every airline flying into O’Hare must play by the same set of rules, but currently, that’s not what is happening. It’s been reported that the Gulf carriers have received over $42 billion in subsidies and other unfair benefits from their governments- subsidies that I know you are aware American carriers do not receive from our government.

That foreign government funding means they aren’t accountable to market forces. It has allowed these Gulf carriers to grow at an astounding rate, with an expanding global presence and a substantial cost advantage over U.S. carriers. They do not offer supply in the face of demand, and as a result, they are able to draw passengers and revenue away from U.S. carriers. Importantly, that funding also puts them in violation of the Open Skies policies that require open and fair competition.

It’s imperative that the U.S. government stands up to protect the domestic aviation industry, which is so important to our economy and the livelihood of hundreds of thousands of workers across the nation. The three major U.S. airlines employ over 25,000 people in the Chicago area, while the Gulf carriers employ less than 50. Standing by American carriers means standing by hardworking Americans.

I strongly urge you to open consultations with Qatar and the United Arab Emirates to address this flow of subsidized flights into the United States. Additionally, while the discussions are ongoing, I think it’s important that a freeze is put in place on new routes by the Middle East carriers.

We cannot let what happened to European markets and airports happen here in America. International service in Europe has plateaued in the last decade, while the airports in Dubai, Abu Dhabi, and Qatar see huge international passenger and service growth, despite the lack of a robust domestic market. France and Germany have already frozen Gulf carrier traffic rights, and the European Commission has asked the United Kingdom to do the same.

Left unchecked, these disruptions to the international economy will harm the U.S. aviation industry, leading to service reductions in important hub markets like Chicago and a loss of good American jobs. As the burden of competing in an unfair market forces U.S. carriers to cut international routes, the airlines will eventually have to make sacrifices here at home.

We must open consultations with Qatar and the United Arab Emirates to protect fair and equal competition in our skies.

Sincerely,

Rahm Emanuel
Mayor