There is nothing fair or open about the “The Fair and Open Skies Act [H.R. 3095].” If enacted, the bill would violate the U.S.-EU Open Skies agreement and invite retaliation on the U.S. commercial and cargo aviation industries by our international Open Skies partners, with consumers and U.S. businesses shouldering the greatest consequences. At its core, this effort is harmful to our economy and anticompetitive. H.R. 3095 will only drive up prices for the flying public, and harm the cargo air and logistics networks that provide just-in-time shipments to individual consumers and that are pivotal to businesses of all sizes nationwide.

Adding conditions to a trade agreement – Open Skies – is likely to ignite the unraveling of a long-established and trusted aviation alliance with the E.U. – one of the nation’s most strategic, and strongest international aviation partners.

• H.R. 3095 threatens the Open Skies framework that has benefited consumers, aviation professionals, and our economy for more than a quarter-century. Moreover, this issue was never contemplated in, nor allowed by the original Open Skies agreements.
• Retaliation by the EU would threaten American jobs supported by U.S. carriers’ transatlantic routes, as well as the potential for economic growth at both primary U.S. hubs for international aviation as well as secondary U.S. airports that are potential targets for expanded international service development.
• Retaliation could be exacted against passenger and cargo services alike, whether the operations are scheduled or charter.
• Countervailing measures taken by aggrieved aviation partners are generally “proportional” rather than “mirror image” meaning that the scope of EU retaliation could be broad.
• U.S. airlines seeking entry to the EU market, established airlines modifying their existing services, and even established airlines with no planned network changes could be targeted.

In July 2019, EU DG MOVE Henrick Hololei stated in a speech to the International Aviation Club in Washington, DC, “I sincerely hope that all parties honour and value our [Air Transport] Agreement and if need be we will use all legal means to defend ATA.” This was not the first warning from Hololei.

• The so-called “Fair and Open Skies Act” would violate U.S. treaty obligations at the expense of U.S. airlines both passenger and cargo, U.S. jobs, U.S. consumers, and the global commercial aviation industry generally.
• U.S. carriers depend on the freedoms in Open Skies agreements to serve foreign markets, support global supply chains and extend their global reach.
• Open Skies generate $4 billion in annual economic gains to consumers.
• Full liberalization of global commercial aviation would support 9 million jobs in aviation and related industries.
• Consumers benefit from Open Skies agreements and air services provided in a competitive marketplace.

In 2018, the DC Circuit found these agreements “promote competition” and that “a service authorized by a bilateral agreement is in the public interest.”

• These gains would all be threatened by the passage of this provision, a primary reason why administrations led by both parties have opposed similar provisions and rejected “flag of convenience” claims by the pilots’ union in the past.

Open Skies agreements are playing a critical role in America’s response to the COVID-19 crisis. Without these agreements already in place, airlines – particularly all-cargo carriers – would not have the flexibility that they need to move critical medicine, supplies, and consumer goods around the world to where they are most needed.

• • • Pharmaceuticals– to this point in the crisis, Americans have not experienced COVID-19-related shortages of necessary drugs, from fever-reducing drugs like acetaminophen to drugs like insulin that many Americans depend on each day.  Open Skies agreements allow cargo carriers to quickly ship these vital drugs from their country of manufacture to the United States without delay.
    • Medical Supplies – from the beginning of the crisis, Open Skies agreements have allowed all-cargo carriers to shift capacity to where it is most needed without renegotiating overflight and landing rights in each instance.  As COVID-19 moves across the globe, cargo airlines are able to meet changing demand on a day-to-day basis.

For instance, cargo carriers are partnering with health care companies to expedite shipments of necessary supplies to designated testing facilities increase COVID-19 detection capacity.

• • • Household Delivery of Critical Supplies & Household Goods – as Americans are practicing social distancing and avoiding trips to public places like grocery stores, the ability to deliver supplies and household goods directly to doorsteps is playing a critical role in minimizing personal contacts.  The global logistics network that enables the fast, efficient, and inexpensive delivery of goods to Americans’ homes is built on Open Skies agreements.

International air cargo, whose networks are predicated on America’s 130 Open Skies agreements, is one of the fastest and safest means of moving important goods around the globe while minimizing the risk of transmission of the COVID-19 virus.  As this crisis evolves, Open Skies agreements are essential to the ability of governments, health care providers, and everyday citizens to respond to changing conditions throughout the country.

Open Skies allows U.S. airlines to maintain global delivery networks to transport troops and vital supplies for the U.S. military. Since 1991, commercial carriers have transported almost 40% of the equipment, supplies, and food to support operations in Iraq, Afghanistan, and the Persian Gulf and more than 90% of U.S. forces to and from Iraq.

Open Skies agreements enable U.S. airlines to grow. Foreign airlines bring thousands of passengers to the United States, creating demand for connecting flights for smaller U.S. airlines. Collectively, USAOS transports approximately 54 million passengers annually, ships nearly 8 million tons of cargo, and employs approximately 1,345,000.

• Under U.S. open skies agreements U.S. carriers have been able to establish new routes:
  • JetBlue Airways now provides service under Open Skies agreements with Colombia and Jamaica
  • JetBlue Airways also was able to initiate service between Boston and Detroit, a route that was previously served by only one carrier, due to the number of international passengers arriving in Boston thanks to Open Skies.