Boeing, FedEx Tell U.S. Airlines to Back Off Open Skies

Rich Thomaselli
by Rich Thomaselli
Last updated: 1:31 PM ET, Thu February 26, 2015

Photo courtesy of Thinkstock

Airplane manufacturer Boeing and shipping giant FedEx both had a message for the three major U.S. airlines looking to amend or rescind the Open Skies Agreement:

Don't mess with our business.

Representatives from both companies are rebuking efforts by American, Delta and United to goad the Obama administration into amending or repealing Open Skies, according to Reuters. CEOs from the three biggest domestic carriers met with administration officials earlier this month, saying Middle East-based airlines Emirates, Etihad and Qatar all received government subsidies - a charge they have denied - making for unfair competition on lucrative trans-Atlantic routes.

The Open Skies agreements among countries eliminates government interference and allows carriers to set their own routes and pricing. As a domino effect, it also gives a company like FedEx easier access to more markets for its shipping business, and gives U.S.-based Boeing more orders for aircrafts.

"Boeing supports a commercial-aviation industry based on open and fair competition, and Open Skies has long been a key factor in this, benefiting both U.S. and international airlines," Boeing spokesman Jim Proulx said in a statement provided to Reuters.

David Bronczeck, chief executive of FedEx's Express air cargo unit, said in a Feb. 18 letter to the heads of the U.S. Departments of State, Transportation and Commerce that "The U.S. should not capitulate to the interests of a few carriers who stand ready to put their narrow, protectionist interests ahead of the economic benefits that Open Skies provides."

While no other U.S. airlines have shown support for American, Delta and United, JetBlue has voiced its opposition to any changes to Open Skies.

JetBlue President Robin Hayes, in a letter obtained by Aviation Week, said he has "unwavering support" for Open Skies.

"Similar to the domestic aviation landscape after deregulation, international services, traffic and economic activity have correspondingly grown since the United States began pursuing its open skies policy," Hayes wrote, according to Aviation Week.


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Rich Thomaselli

Rich Thomaselli

Associate Writer

Editor Associate Writer true 9281 14744 Rich Thomaselli has written for TravelPulse since 2014 and has been a professional journalist for nearly 40 years. His work has appeared in USA Today, the New York Times and New York Yankees publications. He is an 11-time writ

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