Legislators resist foreign control of U.S. airlines

[f5]

http://seattletimes.nwsource.com/html/nationworld/2002855705_airlines10.html


Legislators resist foreign control of U.S. airlines
By The Associated Press


WASHINGTON — Resistance to foreign ownership of U.S. port operations spilled over into the aviation arena when a congressional committee told the Bush administration to postpone a plan to allow more foreign control of domestic airlines.

The House Appropriations Committee on Wednesday passed a resolution directing the Transportation Department to hold off for 120 days on its proposal to give foreign investors in U.S. airlines more latitude to influence management decisions.

"The committee believes that the U.S. aviation industry is part of our critical infrastructure, as are the ports," said the resolution, which passed by voice vote and doesn't have the force of law.

The Transportation Department proposal would give foreign airline investors more control over marketing, flight routes and what kinds of planes to fly. Non-U.S. citizens still couldn't own more than 25 percent of a U.S. airline's voting stock.

The department issued a statement on Thursday saying its proposal "would require U.S. citizens to maintain control of all decisions affecting the security, safety and national defense obligations of domestic airlines."

Reps. Frank LoBiondo, R-N.J., and James Oberstar, D-Minn., are sponsoring legislation backed by 158 other members to prevent the regulation from going into effect for at least a year and to give Congress the right to veto it.

Democratic Sens. Frank Lautenberg of New Jersey and Daniel Inouye of Hawaii sponsored a similar bill.

Copyright © 2006 The Seattle Times Company

[alicia-w]

this could be interesting...

[gtalum]

Resistance hasn't exactly "spilled over" from the port deal. There is a longstanding law preventing foreign ownership of more than 25% of any US-based airline. It's not a new regulation.