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Fair and Open Skies Act
4/17/2024, 11:45 PM
Summary of Bill HR 3095
One of the key provisions of the Fair and Open Skies Act is to address unfair practices by foreign airlines that receive government subsidies. These subsidies can give foreign airlines an unfair advantage over US carriers, leading to decreased competition and potentially harming American jobs in the aviation industry.
The bill aims to level the playing field by requiring the Department of Transportation to investigate and take action against any foreign airline that is found to be receiving unfair subsidies. This could include imposing tariffs or other penalties to offset the advantage gained by the subsidized airline. Additionally, the Fair and Open Skies Act seeks to increase transparency in the airline industry by requiring foreign airlines to disclose any government subsidies they receive. This information would be made publicly available, allowing consumers and regulators to make more informed decisions about which airlines to support. Overall, the Fair and Open Skies Act is designed to protect American jobs, promote fair competition, and ensure transparency in the airline industry. Supporters of the bill argue that it is necessary to prevent foreign airlines from gaining an unfair advantage and to promote a level playing field for all carriers.
Congressional Summary of HR 3095
Fair and Open Skies Act
This bill prohibits the Department of Transportation (DOT) from issuing a foreign air carrier permit or an exemption from certain air carrier certificate requirements under the United States-European Union Air Transport Agreement of April 2007, unless DOT
- finds that issuing the permit or exemption would be consistent with Article 17 bis of the agreement, which provides that opportunities created by the agreement do not undermine labor standards or the labor-related rights and principles contained in the laws of the respective parties to the agreement; and
- imposes conditions on the permit or exemption necessary to ensure compliance with Article 17 bis.
The bill modifies policy considerations relating to air carrier certificates to require DOT to consider preventing entry into U.S. markets by flag of convenience carriers (i.e., foreign air carriers established in a country other the home country of their majority owner in order to avoid regulations of the home country) and preventing the undermining of labor standards.
In carrying out such air carrier certificate requirements, DOT must consider preventing entry of flag of convenience carriers into U.S. markets as being in the public interest and consistent with public convenience and necessity for safety in air transportation and air commerce.
In formulating U.S. international air transportation policy relating to the elimination of discrimination and unfair competition, the Department of State and DOT must include in their considerations the undermining of labor standards.
