Airlines in the United States -- and their customers -- are in a difficult spot. Skyrocketing fuel prices are forcing cost cuts elsewhere, so airlines are nickel-and-diming passengers for almost everything, from snacks and meals to checked bags. While U.S. airlines made a combined profit of $5 billion in 2007, the industry lost $32 billion over the previous six years, during which time Delta, Northwest, United, and US Airways went bankrupt.

Is it any wonder that merger talks abound? Delta and Northwest announced plans to merge earlier this year, pending regulatory approval, creating the country's largest airline. United and US Airways ended talks last week to merge, which would have catapulted the carriers ahead of a Delta-Northwest combination. This followed a failed attempt by United to combine with Continental, which was simultaneously negotiating with American Airlines. Only Southwest, among the top seven U.S. airlines, does not appear desperate to merge.

While airline executives and stock analysts trumpet the necessity of mergers, consumer advocates, politicians and regulators express concern. Consolidation among the major airlines likely won't benefit many travelers, especially those in smaller cities, since a key justification for mergers is to cut overlapping costs.

Less competition will reduce passenger options and increase fares. The intense battle to influence regulators, who need to approve airline mergers, will pit Wall Street against Main Street.

But there is another option that receives little consideration: permitting foreign airlines to acquire or merge with U.S. airlines. Right now, for example, foreign airlines like British Airways are permitted to fly to a U.S. destination to pick up or drop off passengers, but cannot provide direct service between U.S. cities.

Relaxing the restrictions on foreign ownership would allow British Airways and other foreign carriers to serve U.S. locations that are underserved now. It also would avoid the reduction in routes and elimination of cities served when two U.S. carriers merge. And for anyone dreaming of decent meals and better service -- even in economy class -- foreign airlines have a lot to offer, as almost anyone who has flown abroad can attest.