Fair and Open Skies Act This bill amends the policy considerations the Department of Transportation (DOT) must take into account when issuing a foreign air carrier permit. (This allows foreign air carriers to operate in U.S. air space.) DOT must consider preventing the undermining of labor standards when determining whether the foreign air transportation will be in the public interest. Further, the bill amends the requirements for the Department of State and DOT in formulating U.S. international air transportation policy. Under current law, the State Department and DOT must develop a negotiating policy emphasizing the greatest degree of competition compatible with a well-functioning international air transportation system and include specific considerations; this is amended to also include preventing the undermining of labor standards.