Flags of Convenience Don't Fly Here Act

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.