=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2007/03/28/EDGC7N7C8J= 1.DTL --------------------------------------------------------------------- Wednesday, March 28, 2007 (SF Chronicle) Clearing consumers' skies TWO BIG pieces of news rocked the American airline industry last week: t= he Department of Transportation's tentative service approval for start-up Virgin America and the "open skies" aviation agreement between the United States and the EU. Both stories carry good news for consumers. They also point out what consumers have been losing due to this country's byzantine and unfortunate airline regulations. First, the good news: If Virgin America does, indeed, secure final approval, it will bring a low-cost carrier to San Francisco International Airport and some 3,000 jobs to the Bay Area. Flights between SFO and New York's John F. Kennedy Airport would begin as early as this summer, with more major cities to come within months. The new airline would bring welcome competition on coast-to-coast flights, and most observers anticipate lower fares for travelers. For those who wring their hands over the fate of troubled American carriers -- most of whom lobbied heavily to block Virgin's takeoff -- no need. They should be cheering the "open skies" agreement with the EU, which eases restrictions on U.S. airlines flying to Europe (and vice versa) and opens London's Heathrow Airport to competition. This is great news for the American carriers, who have been trying to get easier access to Europe for years. Now, for the bad news: Virgin's laborious three-year saga did nothing to eliminate the absurd U.S. protectionist 25 percent limit on foreign ownership of airlines. Want to know how silly this kind of restriction can be? To comply with the 25 percent limit on foreign holdings, even some of Virgin's American investors had to divest their offshore mutual funds. To those who would argue that this restriction "protects" U.S. airlines, we counter that an influx of foreign capital might prevent our national airlines from going bankrupt on such a frequent basis. There's a bad dose of protectionism in the "open skies" agreement, too -- though U.S. airlines will be allowed to fly within Europe, they won't be granting any such courtesies to European airlines who seek to fly within the United States. There go your lower prices, American consumers. The only good news is that the Europeans still have the power to scuttle this deal if the United States doesn't open its market more by 2010. This is one instance where a little air pressure might be for the best. -----------= ----------------------------------------------------------- Copyright 2007 SF Chronicle <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".