U.S. Aviation Policy—A Critique

In this article (Paragraph No. 25,371) the author provides his views on three recent U.S. government actions in the field of international aviation: (1) the Department of Transportation’s Notice of Proposed Rulemaking (NPRM) on foreign ownership of U.S. air carriers; (2) the wet lease provision of the draft U.S./EU air transport agreement; and (3) Department of Transportation’s (DOT) denial of antitrust immunity for the six Skyteam alliance carriers. While the author continues to favor the repeal or modification of U.S. laws limiting foreign ownership and control of U.S. airlines, the author questions whether an administrative rulemaking process, rather than Congressional legislation, is the public and Congressional opposition the Dubai Ports World’s recent effort to buy proposed rulemaking in aviation could successfully pass muster without an effort first to educate Congress and the American public. Similarly, the author questions the Administration’s approach to lifting the regulatory ban on U.S. airlines’ wet leasing of aircraft from foreign carriers in order to satisfy EU demands in the current U.S.-EU open skies negotiations. Although the author favors lifting the regulatory ban against wet leasing, the author disagrees with the Administration’s means of doing so, which the author calls an “indirect, below-the-radar-screen” approach that lacks transparency and risks protracted litigation. Finally, the author states that the Department of Justice’s concern with “domestic spillover” should not have caused the DOT to deny antitrust immunity to the six-carrier Skyteam alliance. The author states that the erection of so-called “firewalls” at the U.S. carriers, plus the ever present threat of private civil antitrust actions and federal criminal probes, would surely have countered the perceived problem, while preventing what may well be major disadvantages to both the U.S. carriers involved in the alliance.

  • Corporate Authors:

    International Aviation Law Institute

    DePaul University College of Law, 25 E Jackson Boulevard
    Chicago, IL  United States  60604
  • Authors:
    • Mendelsohn, Allan I
  • Publication Date: 2008

Language

  • English

Media Info

  • Media Type: Print
  • Edition: Transfer Binder 2: 2004-2008
  • Features: References;
  • Pagination: pp 13195-13206
  • Monograph Title: Issues in Aviation Law and Policy

Subject/Index Terms

Filing Info

  • Accession Number: 01141836
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 8 2009 3:08PM