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H.R. 2150House115th Congress (2017-2019)In Committee

Flags of Convenience Don't Fly Here Act

Sponsored by Peter A. DeFazioRep. Peter A. DeFazio (D-OR)
Introduced April 26, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:53 PM UTC

The Flags of Convenience Don't Fly Here Act makes sure that any permits the Secretary of Transportation issues to foreign airlines under the U.S.-EU Air Transport Agreement do not weaken labor rights. It requires the Secretary to check that the airline complies with Article 17 bis of the agreement and to add conditions if needed. The bill also adds a new public‑interest factor that blocks "flag of convenience" carriers—airlines set up abroad to dodge home‑country regulations—from entering the U.S. market.

Key Provisions

  • The Secretary of Transportation cannot grant a permit or exemption for a foreign airline under the U.S.-EU agreement if an interested party raises concerns about Article 17 bis, unless the Secretary finds the permit aligns with the article’s labor‑rights intent and adds any needed conditions.
  • Amends the public‑interest test in the permitting statute to consider the total circumstances, including labor‑related factors, when evaluating foreign air transportation applications.
  • Adds a new policy factor that explicitly prevents "flag of convenience" carriers—foreign airlines established outside the owners’ home country to avoid regulations—from entering U.S. markets.
  • Defines "flag of convenience carrier" in the law as a foreign air carrier set up in a country other than its majority owners’ home country to evade home‑country regulations.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Aviation.

Aviation Subcommittee

April 27, 2017

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HouseIntro Referral

Introduced in House

April 26, 2017

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

Transportation and Infrastructure Committee

April 26, 2017

HouseCommittee

Referred to the Subcommittee on Aviation.

Aviation Subcommittee

April 27, 2017

Bill Text

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Introduced in HouseIssued April 26, 2017

I

115th CONGRESS

1st Session

H. R. 2150

IN THE HOUSE OF REPRESENTATIVES

April 26, 2017

Mr. DeFazio (for himself, Mr. LoBiondo, Mr. Larsen of Washington, and Mr. Ferguson) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To ensure that permits issued by the Secretary of Transportation to foreign air carriers under the United States-European Union Air Transport Agreement of April 2007 do not undermine labor rights or standards, and for other purposes.

1.

Short title

This Act may be cited as the Flags of Convenience Don’t Fly Here Act.

2.

Foreign air transportation under United States-European Union Air Transport Agreement

The Secretary of Transportation may not issue a permit under section 41302 of title 49, United States Code, or an exemption under section 40109 of such title, authorizing a person to provide foreign air transportation as a foreign air carrier under the United States-European Union Air Transport Agreement of April 2007 (as amended) in a proceeding in which the applicability of Article 17 bis of such Agreement has been raised by an interested person, unless the Secretary—

(1)

finds that issuing the permit or exemption would be consistent with the intent set forth in Article 17 bis of the Agreement, that opportunities created by the Agreement do not undermine labor standards or the labor-related rights and principles contained in the laws of the respective parties to the Agreement; and

(2)

imposes on the permit or exemption such conditions as may be necessary to ensure that the person complies with the intent of Article 17 bis.

3.

Public interest test

Section 41302(2) of title 49, United States Code, is amended—

(1)

in subparagraph (A) by striking under an agreement with the United States Government; or and inserting ; and; and

(2)

in subparagraph (B) by striking the foreign air transportation and inserting after considering the totality of the circumstances, including the factors set forth in section 40101(a), the foreign air transportation.

4.

Public interest requirements

(a)

Policy

Section 40101(a) of title 49, United States Code, is amended by adding at the end the following:

(17)

preventing entry into United States markets by flag of convenience carriers.

.

(b)

International air transportation

Section 40101(e)(9) of title 49, United States Code, is amended—

(1)

in subparagraph (D) by striking and at the end;

(2)

in subparagraph (E) by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following:

(F)

erosion of labor standards associated with flag of convenience carriers.

.

(c)

Flag of convenience carrier defined

Section 40102(a) of title 49, United States Code, is amended—

(1)

by redesignating paragraphs (21) through (47) as paragraphs (22) through (48), respectively; and

(2)

by inserting after paragraph (20) the following:

(21)

flag of convenience carrier means a foreign air carrier that is established in a country other than the home country of its majority owner or owners in order to avoid regulations of the home country.

.