This is America, yes?
Land of the free? Bastion of capitalism? Home of the greatest economic system in the world?
OK, phew, just checking.
Because if you listened to the chief executive officers from American Airlines, Delta Air Lines and United Airlines tell it, the U.S. was some third-world nation in dire need of government protection from unscrupulous competitors who want to … wait for it … make a living by doing business in the United States.
The CEOs of the three biggest U.S. carriers met two weeks ago with Transportation Secretary Anthony Foxx, Commerce Secretary Penny Pritzker and other government leaders, seeking relief from the Open Skies Agreement.
Technically, the meeting was to discuss the Middle East Gulf airlines, whom U.S. carriers believe have unfair advantages in flying international routes - ahem, to the U.S. - because of government subsidies and perceived discounts on fuel prices.
In reality, domestic airlines are concerned about competition from all foreign carriers that they believe have a competitive edge or skirt labor laws, such as the allegations against Norwegian Air, another carrier trying to make its way in the U.S. trans-Atlantic landscape.
This is alarming.
And as a consumer, you should be concerned.
The Open Skies Agreement, formulated in 1992, serves as a de facto free trade agreement. By its own definition, the U.S. State Dept. defines Open Skies agreements between countries as "eliminating government interference in the commercial decisions of air carriers about routes, capacity, and pricing, freeing carriers to provide more affordable, convenient, and efficient air service for consumers."
So ask yourself - would you really like to be told you couldn't purchase a Pepsi, only Coke? Couldn't buy a BMW, only a Ford? Because that's what this is really about.
They used to have a word for that in the American business lexicon. It was a ittle thing called a monopoly.
Choices. That's all any consumer asks for. But by asking for relief from, or even an appeal of, Open Skies, the U.S. airlines are trying to limit those choices.
As Bloomberg News writer Adam Minter so deftly pointed out, "If Delta, United and American Airlines are truly concerned about Gulf carriers, they shouldn't be running to Washington for protection. There's plenty they could do on their own, from using profits to improve their mediocre service, to burying the hatchet with Gulf carriers by offering to form partnerships."
Or, in other words, if you can fly from New York to London in a roomier, nicer cabin for the same airfare or less on Emirates than, say, a crowded seat on Delta, wouldn't you? Minter is right - they're called code-share agreements for a reason, because everybody shares in the wealth.
By repealing Open Skies, U.S. airlines are running the risk of alienating travel, tourism and economic spending on both sides of the oceans if choice are limited and potential passengers decide, "Eh, I'm just not going to go."
It's time for U.S. airlines to get in the game instead of trying to change the rules.
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