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.