Friday, June 25, 2010

The Jones Act and Airline Cabotage

Airbus (Photo from Wikipedia)

From an editorial in the Washington Post The Jones Act ship law has outlived its usefulness

The editorial notes that the Jones Act does not apply to the oil clean up but criticizes the Jones Act more broadly. The article asks:
If FedEx can move cargo across the country in European-made Airbuses, why can't a boat built in, say, Canada, ship wheat from Los Angeles to Honolulu?

This is a bit misleading,  U.S. airlines are in fact  protected by law from foreign competition, so-called Airline Cabotage.  Unlike the maritime industry however, U.S. airlines are not required to use planes built in the U.S, while the Jones act does require U.S. companies engaged in coastwise shipping to use vessel built in U.S. shipyards.


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