Fair and Open Skies Act

To ensure that authorizations issued by the Secretary of Transportation to foreign air carriers do not undermine labor rights or standards, and for other purposes. 1. Short title This Act may be cited as the Fair and Open Skies 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), unless the Secretary— (1) finds that issuing the permit or exemption would be consistent with Article 17 bis of the Agreement; and (2) imposes on the permit or exemption such conditions as may be necessary to ensure that the person complies with 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. (18) preventing the undermining of labor standards. . (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) undermining labor standards. . (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 . December 20, 2022 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: 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.