America, get out of the dark and into the open skies!
April 2008 has come and passed, and with it came the initial passing of the Open Skies Act. In keeping with my nomadic tradition, I felt it necessary to dedicate some discussion to the new, highly touted, Act. So what is Open Skies in a nutshell? Let’s start with some basic info:
Before Open Skies, only limited foreign carriers could fly to international destinations from a few limited U.S. cities. Conversely, U.S. carriers had limitations on hubs in international countries. The Open Skies Act now offers freedom of flights so that international (especially European) carriers can have new and spread out hubs in the U.S. Previously, airlines were only allowed to base flights out of their home country. Now a German carrier, such as Luftansa, could have flights from Miami to Madrid. From day one of the Act, Heathrow in London and JFK in New York expanded terminals to accommodate new airlines, flights and destinations. Plans have begun to build terminals for flights from smaller U.S. cities like Charlotte, NC to smaller European Cities like Munich, Germany.
Wow! So, why would I complain about America in the title of this piece? Why would an Act promising economic expansion for airlines and low fares for consumers be bad for American carriers? Oh right, DUH! American carriers are dying! Post 9/11 fears and economic depression have left most of the major U.S. airline companies in their death thralls. This isn’t news to anybody. The market is now open up to new, prosperous European airline companies. I’m sure American Airlines is wetting itself. European airlines are offering cheap, no frills flights and seemingly grossing top dollar. On my last trip I flew from London to Athens for 30 euros ($50). You can’t fly within California for that cheap!
U.S. companies such as American and United have vowed not to allow European companies to fully own airlines in the U.S., even though that was the main part of Phase 2 of Open Skies, to be enacted in the next decade. I guess I’d hate to have my company fail too, but thanks for screwing the rest of us guys. Richard Branson, owner of Virgin, (who stands to gain the most from the Act) has already stated he would disregard Phase 1 of the Act if the U.S. didn’t jump on board with the ownership issues of Phase 2. I don’t know about you, but I wouldn’t piss Branson off…
Things are looking up for the consumer though! There are, of course, going to be more issues with fuel costs, especially with the expansion of flights. I’d recommend anyone traveling abroad to note new Fuel Surcharges in the fine print of their ticket costs. Also baggage limitations and fees are sure to become more prevalent. BUT, European flights are at their cheapest this summer! So, pack a small bag, read the fine print and be one of 18% of our citizens who owns a passport! Lose the Xenophobia and open the skies!
