Calls On Administration To Open Consultations With Qatar And UAE For Violations Of The Agreement

The United States Conference of Mayors (USCM) recently passed Resolution No. 55 calling on the U.S. Government to initiate consultations with the governments of Qatar and the United Arab Emirates (UAE) to address over $40 billion in subsidies and other benefits that the Gulf nations provide to their state-owned airlines. The subsidies, which are a violation of long-held Open Skies policies between the United States and both Gulf nations, are detailed in a study released by the Partnership for Open and Fair Skies earlier this year.

The resolution, which was passed unanimously by the International Affairs Standing Committee and by the full conference without objection, has the bipartisan support of 49 cosponsoring mayors from around the country. In the resolution, the mayors note that Open Skies agreements have brought great benefits to U.S travelers and the U.S. economy by allowing American carriers to compete on a level playing field. The massive subsidies provided to Qatar Airways, Etihad Airways and Emirates Airline distort the aviation marketplace, undermine fair competition and pose a direct threat to the airline industry and thousands of American jobs.

Former President of the USCM, Mayor Elizabeth Kautz of Burnsville, MN, is the lead cosponsor of the resolution. “We urge the U.S. government to initiate consultations with Qatar and the UAE as provided for within Open Skies agreements to address this issue,” stated Mayor Kautz. “American cities, both large and small, are at risk if these massive subsidies are not addressed.”

Mayor Chris Bollwage of Elizabeth, NJ was also a vocal proponent of the resolution: “For some, it might be difficult to understand how over $40 billion in state subsidies and other unfair advantages that have been directed to the Gulf airlines would impact the city of Elizabeth. As Mayor, I can tell you that the threat is real and the implications are significant.  The economic growth and development that is taking place in our city is being threatened by unfair subsidies and benefits provided to these Gulf carriers.”

“As Mayor, I recognize the important role that American Airlines and the other U.S. legacy carriers have made to the City of Irving and North Texas,” stated Mayor Beth Van Duyne of Irving, TX. “American Airlines, along with its allies Delta Air Lines and United Airlines, has requested that the United States enter into consultations with the Gulf States, as allowed under the Open Skies agreements, to review and ensure a competitive balance is maintained among international airlines.” 

Another cosponsor of the resolution, Mayor Frank Ortis of Pembroke Pines, FL summarized the issue by saying, “$42 billion in government subsidies from Qatar and the UAE to their carriers has resulted in rapid expansion into U.S. markets, threatening the U.S. airline industry and thousands of American jobs.”

In addition to the USCM, which includes over 1,400 mayors from across the country, organizations and elected officials from around the country have requested that Secretary of State John Kerry, Secretary of Transportation Anthony Foxx and Secretary of Commerce Penny Pritzker open consultations with Qatar and the UAE. 262 Members of Congress, over 60 business, trade and economic groups, and more than a half-dozen national labor unions have also made the same request to the U.S. government. 

FMI: www.usmayors.org