Members of Congress Urge Obama Administration to Act Swiftly to Address Unfair Gulf Airline Subsidies
Request follows April letter from over half of the House of Representatives calling for action
Washington, D.C. (September 30, 2015) – Six top members of Congress sent a letter to Transportation Secretary Anthony Foxx urging the Obama administration to open consultations with Qatar and the United Arab Emirates to address the $42 billion in subsidies and other unfair benefits provided to the state-owned Gulf carriers. The bipartisan letter, which was signed by Representatives Lipinski, Dold, Israel, Pallone, Cook and Emmer, follows a letter that was sent to the Administration by 262 House members expressing concern about the impact of the massive subsidies on the U.S. aviation industry.
In today’s letter, which comes after the public comment period for the Departments of State, Commerce and Transportation closed last month, the Members request a meeting with Secretary Foxx to discuss the risks to the U.S. airline industry and to U.S. jobs from the subsidized Gulf carriers.
“The Partnership thanks these leaders for recognizing the urgent need for the Obama administration to swiftly request consultations with Qatar and the UAE to finally put an end to the massive, market-distorting subsidies,” said Jill Zuckman, chief spokesperson for the Partnership for Open & Fair Skies. “We hope that Secretary Foxx will listen closely to the concerns of Congress because inaction poses a serious threat to American jobs and the U.S. aviation industry.”
The full text of the letter is below or click here.
Dear Secretary Foxx,
Earlier this year, we joined with 256 of our colleagues in the U.S. House of Representatives in sending a letter to the Department of Transportation urging timely consultations with the governments of Qatar and the United Arab Emirates (UAE) to address the subsidized capacity that their state-owned airlines – Qatar Airways, Etihad Airways, and Emirates – are deploying to the United States, in direct violation of U.S. Open Skies policy.
As the public comment period is now officially closed, it is time for your agency to swiftly address these trade violations. Therefore, we write today to formally request a meeting with you to discuss the threats posed by the subsidized Gulf carriers to the U.S. airline industry and to U.S. workers’ jobs.
Contrary to the goals of Open Skies policy, Qatar, Emirates and Etihad airlines have received $42 billion in subsidies and unfair benefits from their governments, flouting the good faith inherent in these international treaties and undermining the principles of open competition. Through the docket submission process, additional evidence has surfaced that the Gulf carriers’ entry into the United States is causing significant harm to the U.S. aviation industry and the hundreds of thousands of workers it supports. Instead of stimulating demand, the subsidies and unfair benefits are allowing the Gulf carriers to take away passengers from domestic carriers, hurting service to cities across the country.
Failure to confront these actions will set a dangerous precedent for future trade agreements with other nations and will lead to significant job losses and cuts in airline service in the United States.
It is our hope that a meeting with you will allow for a better understanding of Congress’s concerns and the timely need for consultations with Qatar and the UAE, as provided for in the bilateral aviation agreements.
Thank you in advance for your prompt attention to this request.
Rep. Robert Dold
Rep. Daniel Lipinski
Rep. Steve Israel
Rep. Frank Pallone, Jr.
Rep. Paul Cook
Rep. Tom Emmer