Flags of Convenience Don't Fly Here Act

To ensure that permits issued by the Secretary of Transportation to foreign air carriers under the United States-European Union Air Transport Agreement of April 2007 do not undermine labor rights or standards, and for other purposes. 1. Short title This Act may be cited as the Flags of Convenience Don’t Fly Here Act 2. Foreign air transportation under United States-European Union Air Transport Agreement The Secretary of Transportation may not issue a permit under section 41302 of title 49, United States Code, or an exemption under section 40109 of such title, authorizing a person to provide foreign air transportation as a foreign air carrier under the United States-European Union Air Transport Agreement of April 2007 (as amended) in a proceeding in which the applicability of Article 17 bis of such Agreement has been raised by an interested person, unless the Secretary— (1) finds that issuing the permit or exemption would be consistent with the intent set forth in Article 17 bis of the Agreement, 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 (2) imposes on the permit or exemption such conditions as may be necessary to ensure that the person complies with the intent of Article 17 bis. 3. Public interest test Section 41302(2) of title 49, United States Code, is amended— (1) in subparagraph (A) by striking under an agreement with the United States Government; or ; and (2) in subparagraph (B) by striking the foreign air transportation after considering the totality of the circumstances, including the factors set forth in section 40101(a), the foreign air transportation 4. Public interest requirements (a) Policy Section 40101(a) of title 49, United States Code, is amended by adding at the end the following: (17) preventing entry into United States markets by flag of convenience carriers. . (b) International air transportation Section 40101(e)(9) of title 49, United States Code, is amended— (1) in subparagraph (D) by striking and (2) in subparagraph (E) by striking the period at the end and inserting ; and (3) by adding at the end the following: (F) erosion of labor standards associated with flag of convenience carriers. . (c) Flag of convenience carrier defined Section 40102(a) of title 49, United States Code, is amended— (1) by redesignating paragraphs (21) through (47) as paragraphs (22) through (48), respectively; and (2) by inserting after paragraph (20) the following: (21) flag of convenience carrier .

Summary: Flags of Convenience Don't Fly Here Act This bill bars the Department of Transportation (DOT) from issuing a foreign air carrier permit or an exemption from certain air carrier certificate requirements to a person to provide foreign air transportation under the United States-European Union Air Transport Agreement of April, 2007, in a proceeding in which the applicability of Article 17 bis of such Agreement has been raised by an interested person, unless DOT: finds that issuing the permit or exemption would be consistent with the intent set forth in Article 17 bis of the agreement, 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 that the person complies with the intent of Article 17 bis. In carrying out such air carrier certificate requirements, DOT shall 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, the Department of State and DOT shall develop a negotiating policy emphasizing the greatest degree of competition for a well-functioning air transportation system that eliminates specified discriminatory and unfair competitive practices faced by U.S. airlines in foreign air transportation, to include erosion of labor standards associated with flag of convenience carriers. A "flag of convenience carrier" is defined as a foreign air carrier that is established in a country other than the home country of its majority owner or owners in order to avoid the home country's regulations.