Reader Feedback: Open Skies or Opening the Floodgates?

Major U.S. airlines will soon emerge from bankruptcy. During this same time financial and economic changes are occuring to help U.S. airlines emerge profitable. This is happening while the Department of Transportation (DOT) issued a notice of proposed rule making that changes who can make profit and loss decisions at these airlines. These decisions affect American jobs and the future of aircraft technicians re-entering the industry.

In 2005, policymakers at DOT changed a federal rule that affects the percentage of United States citizens who are eligible to be directors and executive officers at U.S. airline companies. The rule was changed to allow U.S. investor’s easier access into foreign capital markets.

New money will help ailing U.S. airline companies with cash flow and the benefit of larger profits in foreign markets. This is at a loss to the U.S. because the policymakers that changed the rule plan to use it in cooperation with an Open Skies agreement.

The U.S. has already drafted with several foreign European Union countries that will be the main source of new money and capital for domestic airlines. These would be the foreign directors and executive investors that would be allowed the greatest percentage control of U.S. airlines economic and financial decisions.

The U.S. economy has become more dependant on foreign goods and services. It is understandable why it makes good financial sense for U.S. airline companies to operate in foreign markets and reap large profits. It does NOT make sense to change a federal rule that gives foreign investors a large percentage of decision making power and more control of financial decisions that could cause American airline maintenance jobs to go to competitive, foreign airline companies.

The current federal rule protects U.S. jobs because it requires that U.S. citizens must hold 75 percent of the voting shares of the airline. Two-thirds of the directors and officers must also be U.S. citizens. Airline investors are seeking ways to improve financial return and expand into profitable foreign markets.

The new federal rule will be used as leverage because it changes who can control all commercial aspects of U.S. airline operations, including fleet mix, routes, frequencies, classes of service and pricing. The new rule would not require 75 percent of the voting shares of the airline to be U.S. citizens.

Under the new rule the greatest percentage of financial control would be made by whatever foreign airline or investor gives U.S. airlines the most money. In return, D.C. policymakers plan to give these foreign investors an Open Sky agreement and greater access into the profitable U.S. airline market.

It would make sense to revise the federal rule so that American jobs are protected from the possibility of foreign airline investors sending U.S. aircraft maintenance work to lower-cost foreign repair stations. There is a bill in progress, which is a start to some of the future congressional protection needed. Representatives need input and comments; they shouldn’t change regulations or pass bills that don’t make sense. Take action by talking to congressional supporters, Jim Berard 202-225-6260 (D) Minn. or Jason Galanes 202-225-6572 (R) N.J.

Mark W. Weiler

AP/IA/FCC; FAA safety team and technician for a large U.S. airline at Chicago O’Hare airport