FedEx CEO Warns Of 'Air Trade War' If Open Skies Rolled Back
April 29 2009 - 10:56AM
Dow Jones News
FedEx Corp. (FDX) Chief Executive Frederick W. Smith warned
Wednesday of an "all-out air trade war" if the U.S. Congress moves
to block efforts to further deregulate air travel between the U.S.
and Europe.
Smith criticized a push in Congress to roll back provisions of
the trans-Atlantic "open skies" treaty that went into effect last
year. Under the treaty, European carriers can operate flights to
the U.S. from any city in the European Union, and vice versa.
U.S. lawmakers should resist the "protectionist" urge to block
additions to the treaty, Smith said in a speech at an aviation
summit hosted by the U.S. Chamber of Commerce.
"Protectionism is tempting to political leaders when a market is
shrinking and an industry is hurting," Smith said, adding that the
U.S. "must simply turn back that tide."
He singled out an initiative in Congress, led by House
Transportation and Infrastructure Committee Chairman James
Oberstar, D-Minn., to tighten restrictions on foreign ownership of
U.S. airlines.
The E.U. has made easing those restrictions a priority in the
next phase of "open skies" talks, scheduled to begin later this
year.
"We'll be in an all-out air trade war" if U.S. lawmakers push to
roll back the trans-Atlantic treaty, Smith said.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com