May 21, 2015

Mayors of Major U.S. Cities Stand Up for a Level Playing Field and American Jobs

For Immediate Release 
Contact:
Sabrina Singh
openskiespress@skdknick.com

Washington, D.C. (May 20, 2015) – The Partnership for Open & Fair Skies applauds Mayors Ralph Becker of Salt Lake City,  Daniel Clodfelter of Charlotte, Mike Duggan of Detroit, Rahm Emanuel of Chicago, Annise Parker of Houston, Betsy Price of Fort Worth and Kasim Reed of Atlanta for calling on the U.S. government to open consultations with the nations of Qatar and the United Arab Emirates (UAE) to address $42 billion worth of subsidies and other unfair benefits funneled by their governments to their state-owned airlines over the last decade.  In making formal requests to the U.S. Secretaries of the Transportation, Commerce, and State Departments, these Mayors have taken a stand for fair competition, the health of the U.S. airline industry, and the economic development and vitality of their cities.

The mayors made their support for consultations known through letters to the Obama Administration, where they highlighted violations of Open Skies policy and the risk to hundreds of thousands of American jobs.

“I know firsthand the innumerable benefits that Open Skies policies have brought not just to Detroit, but to the entire country. Open Skies agreements have provided enhanced airline service to the public and open and fair competition between airline carriers operating internationally,” said Mayor Mike Duggan. “[These agreements] have been integral to the $17.6 billion in economic activity that the commercial airline industry has brought to our state, which is why it is so important that we uphold and adhere to the guiding principles set forth in these Open Skies agreements.”

Mayor Betsy Price of Fort Worth echoed those sentiments, stating, “I firmly support Open Skies.” She also acknowledged that the massive subsidies that Qatar and the UAE are providing to Qatar Airways, Etihad Airways, and Emirates Airline are “altering the free market framework established by Open Skies and they will ultimately have a negative economic impact here in the United States.”

Today, 11 million American jobs and $1.5 trillion in nationwide economic activity are supported by the U.S. airline industry. Economists estimate that every daily international roundtrip flight that is foregone or lost by a U.S. airline due to unfair competition with the three heavily subsidized Gulf carriers, an average net loss of more than 800 U.S. jobs occurs.

“If unfair competition is permitted in contradiction to the current Open Skies policy, service to all U.S. communities will suffer as our domestic airlines are forced to reduce flights,” said Mayor Kasim Reed of Atlanta. “If U.S. airlines are pushed off of international routes and lose market share to the government-owned Gulf airlines, it will mean American job losses.&rdquo

Mayor Daniel Clodfelter of Charlotte noted that American Airlines employs nearly 10,000 people at the Charlotte Douglas International Airport with over 725 daily flights and more than 43.5 million passengers annually. In his letter to the Obama administration, he said, “The allegations, if proven true and left unchecked, will result in service cuts, job losses and slower economic development in our region.”

Annise Parker, Mayor of Houston, said, “As home to one of the country’s ten busiest airports, the City of Houston holds significant interest in ensuring that U.S. airlines—indeed all air carriers—are provided a fair and level playing field to compete for routes.”

Ralph Becker, Mayor of Salt Lake City, also expressed his concerns over the impact these subsidies will have on his city, stating, “The high level of air service that operate on a daily basis at Salt Lake City International Airport provides a vital link between Salt Lake City and the world.  Our city and others across the country can’t afford this.”

“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,” added Chicago Mayor Rahm Emanuel. “I strongly urge you to open consultations with Qatar and the United Arab Emirates,” added Mayor Emanuel.

The Partnership for Open & Fair Skies commends these mayors for adding their voices to the 262 members of the U.S. House of Representatives and dozens of business, trade and economic groups around the country. They all recognize that our Open Skies agreements must be honored and enforced and that the massive subsidies provided by the nations of Qatar and the UAE violate the spirit of these agreements, posing real and immediate harm to our communities across the nation. We applaud the mayors for urging the U.S. government to open bilateral consultations with Qatar and the UAE and enforce U.S. trade policy.

Background on Partnership for Open & Fair Skies

The Partnership for Open & Fair Skies is a coalition that includes American Airlines, Delta Air Lines and United Airlines, along with the Air Line Pilots Association, the Allied Pilots Association, the Southwest Airline Pilots’ Association, the Association of Professional Flight Attendants, the Association of Flight Attendants-CWA, the Communications Workers of America, the Airline Division of the International Brotherhood of Teamsters, and the Transport Workers Union of America. The Partnership presented a white paper, Restoring Open Skies: The Need to Address Subsidized Competition from State-Owned Airlines in Qatar and the UAE, to the U.S. government. The Partnership called on the Obama Administration to open consultations under the Open Skies agreements with Qatar and the United Arab Emirates to address the flow of subsidized capacity to the U.S., and to seek a freeze on new passenger service during the consultations.

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