House Bill To Protect U.S. Jobs In International Airline Alliances <


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House Bill To Protect U.S. Jobs In International Airline Alliances

By Daniel Baxter

March 12, 2010 - Legislation introduced this week, bill H.R.4788, better know as the Aviation Jobs Outsourcing Prevention Act which directs the Department of Transportation to ensure that new revenue-sharing agreements between U.S. and foreign airlines are beneficial to U.S. airline workers as well as to their airlines is welcomed by the Air Line Pilots Association.  

“This legislation protects the U.S. workers whose dedication and professionalism have helped to build the airlines that participate in international alliances,” said Capt. John Prater, president of ALPA. “One-quarter of the jobs in the U.S. airline industry have disappeared, and international revenue-sharing agreements threaten to make a bad situation even worse for U.S. workers.” 

One such agreement involves United Airlines, which has entered into a joint venture with Aer Lingus to fly a Washington-to-Madrid route starting on March 28, whereby United would provide marketing and a feed of passengers, and would equally split the costs of establishing and maintaining this new route, all without utilizing either United aircraft or United pilots. 

“No issue undermines United’s pilots more than the threat of outsourcing,” said Capt. Wendy Morse, United Master Executive Council chairman. “We already have 1,437 of our pilots laid off by United. Too many airline managements are opting to toss aside experienced, well-trained airline pilots for the sake of economics. This is a recipe for disaster. 

“United pilots have a safety record that is respected worldwide. Yet, we watch as management continues to outsource too many of these U.S. pilot jobs. I, too, applaud Reps. Bishop, Michaud, and McCotter for their foresight and efforts to protect the jobs of U.S. pilots and other workers.” 

Millions of U.S. jobs have been offshored because of business practices that have shed good U.S. jobs for cheaper labor outside of the country. This legislation will establish basic requirements for U.S. airlines that enter into international revenue-sharing agreements to ensure that these airlines conduct an amount of the flying that is in proportion to the amount of revenue the airline receives. A U.S. airline will be able to share revenue with a foreign airline, but that revenue will be based on the amount of flying each airline performs. 


“This legislation will help U.S. workers keep their jobs without affecting existing code-share agreements,” continued Prater. “This bill is a win for the American worker and for our economy. We urge Congress to swiftly pass it.” 

(See 111th CONGRESS 2d Session H. R. 4788 bill below) 

March 9, 2010 In The House Of Representatives Mr. BISHOP of New York (for himself, Mr. MICHAUD, and Mr. MCCOTTER) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure  


To amend title 49, United States Code, to establish limitations on the approval of cooperative arrangements between 2 or more air carriers or between an air carrier and a foreign air carrier, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. 

Section 1. Short Title.  This Act may be cited as the 'Aviation Jobs Outsourcing Prevention Act'. 

Sec. 2. Limitations On Approval Of Cooperative Arrangements Between Air Carriers. 

(a) Filing- Section 41309(a) of title 49, United States Code, is amended by inserting after 'may file' the following: and, with respect to an arrangement described in subsection (b)(3), shall file,

(b) Approval- Section 41309(b) of such title is amended -

(1) By striking 'or' at the end of paragraph (1)(B);

(2) By striking the period at the end of paragraph (2)(B) and inserting or and

(3) By adding at the end the following: (3) or, after periodic review, end approval of, an agreement, request, or modification that provides for or permits the sharing or pooling of revenue or profits between participating carriers earned in covered operations, unless the Secretary finds that each participating air carrier's share of the pooled revenue or pooled profits (whichever share is greater) contributed by covered operations in any measurement period does not exceed 130 percent of the participating air carrier's share of pooled ASMs in covered operations during the measurement period.

(c) Definitions- Section 41309 of such title is amended by adding at the end the following:

(d) Definitions- In subsection (b)(3) and this subsection, the following definitions apply:

(1) COVERED OPERATIONS- The term `covered operations' means the nonstop carriage of passengers under an agreement, request, or modification described in subsection (b)(3) between a place in the United States and a place outside the United States.

(2) MEASUREMENT PERIOD- The term `measurement period' means any period of 12 consecutive months commencing on or after the first day of the first month of operations under an agreement, request, or modification described in subsection (b)(3) following the Secretary's approval or reapproval thereof.

(3) PARTICIPATING AIR CARRIER- The term `participating air carrier' means an air carrier participating in an agreement, request, or modification described in subsection (b)(3).

(4) PARTICIPATING CARRIERS- The term `participating carriers' means 2 or more air carriers, or an air carrier and a foreign air carrier, participating in an agreement, request, or modification described in subsection (b)(3).

(5) POOLED ASMS- The term `pooled ASMs' means the available seat miles operated by the participating carriers in covered operations that contribute to the pooled revenues or profits from such operations in the measurement period.

(6) SHARE OF POOLED ASMS- The term `share of pooled ASMs' means, with respect to an air carrier during a measurement period, the quotient of the pooled ASMs operated by the air carrier in that period divided by the aggregate of all pooled ASMs operated in that period by the participating carriers.'.

(d) Applicability- The amendments made by this section shall apply to agreements, requests, and modifications referred to in section 41309(a) of title 49, United States Code, whether approved before the date of enactment of this Act or submitted for approval prior to, on, or after such date of enactment.

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