Airline Jobs at Risk as DOT Opens Door To Foreign Competition

A federal Transportation Department decision this week that opens the door to foreign competition in the domestic aviation industry will put American jobs at U.S. airlines in jeopardy, AFA-CWA leaders say.

The ruling will allow a proposed airline called Virgin American – backed by Virgin Atlantic owner Richard Branson, a British citizen -- to enter the U.S. market. Last year, the airline made the same bid but was rejected because it could not prove it was owned and operated by American citizens.

Now, days before European officials will decide on a controversial "open skies" treaty between the United States and the European Union, DOT officials say Virgin America meets the citizenship test.  The proposed Virgin American hired a new CEO and tweaked its structure a bit for the second application, but it's clear that it is still closely tied to Virgin Atlantic, AFA-CWA contends.

"The decision is nothing but a trade off to buy European approval of the US/EU treaty," AFA-CWA President Patricia Friend said. "The U.S. aviation market is one of the last, strong domestic industries that has not been invaded by foreign competition, yet our officials seems dedicated to destroying it. And through their shortsightedness, it will once again be the flight attendants and the rest of the middle class who suffer."

The ruling came in spite of an AFA-CWA letter-writing blitz to local and federal officials urging them to reject Virgin America's application and protect the recovering domestic aviation industry from foreign control.

The open skies accord that will be decided shortly by Congress and the 27 European Union member countries would allow any European or American airline to fly any route between any city in Europe and any city in the United States.

The New York Times reported that there has been British opposition to the treaty because Virgin Atlantic and British Airways believe it gives away too much to U.S. carriers. Presently, the two airlines, as well as United and American Airlines, have exclusive rights to fly between the United States and London's Heathrow Airport.

A Virgin America spokesperson told the Times the company was pleased with the DOT ruling and hopes to start flights between San Francisco and New York by this summer. The airline could begin serving Los Angeles, San Diego, Las Vegas and Washington, D.C., within another nine months.