Open Skies Agreement and Fly America Act

The Open Skies Agreement and Fly America Act are two important pieces of legislation that affect the airline industry in the United States. While these two laws are related, they have different purposes and functions.

The Open Skies Agreement is an international aviation agreement that allows airlines from two different countries to freely operate flights to and from each other`s territories without any restrictions on the number of flights, routes, or prices. This agreement was first signed between the United States and the European Union in 2007, and since then, over 120 countries have signed similar agreements with the US.

The Open Skies Agreement is intended to promote competition and growth in the aviation industry by removing barriers to entry for airlines and encouraging increased travel and tourism between countries. Under this agreement, airlines are free to choose the routes they want to serve, the frequency of flights, and the prices they want to charge, all without interference from government regulators.

On the other hand, the Fly America Act is a domestic regulation that requires all federal government employees and contractors to use US-based airlines for official travel, unless a waiver has been granted. This law is intended to support the US airline industry by giving preference to American airlines for government travel, which is a significant source of revenue for these companies.

The Fly America Act applies to all federal agencies, including the Department of Defense, the Department of State, and NASA, among others. It also applies to all federally funded travel, such as travel for research or education purposes. However, there are certain exceptions to this law, such as when no US airline services a particular route, or when using a US airline would result in unreasonable cost or travel time.

In conclusion, the Open Skies Agreement and the Fly America Act are two important laws that have significant implications for the airline industry in the United States. While the Open Skies Agreement promotes international competition and growth in the industry, the Fly America Act supports American businesses by giving priority to US-based airlines for government travel. Together, these laws help regulate the aviation industry and ensure that it continues to evolve and adapt to changing market conditions.