air carrier citizenship requirements

[FOB]

Where is the regulation that allows for 49% foreign ownership of an air carrier? Part 135 in particular.

This issue has been brought up regarding Virgin America and also DHL, but I have found no official reference.

I have found laws defining US citizenship for aircraft registration, but not operators.

Thanks in advance.

 

[Clutch_Cargo]

In order to operate as a U.S. air carrier, an entity must obtain a certificate of public convenience and necessity from the DOT. A prerequisite for obtaining that authority is U.S. “citizenship.” Currently, U.S. law defines a “citizen of the United States” as an individual U.S. citizen, a partnership whose members are U.S. citizens, or a corporation or association organized under U.S. law where at least 75 percent of the voting interest is owned and controlled by U.S. citizens.

The requirements for the certificate are found in 49 U.S.C. § 41102 and the definition of a citizen is found in 49 U.S.C. § 40102.

The DOT has historically interpreted these regulations to require that an air carrier in fact be under the actual control of U.S. citizens. The DOT makes this determination on a case-by-case basis, and has provided guidance as to what is considered “control.” For example, total foreign equity investment of up to 49 percent (with a maximum of 25 percent being voting stock), by itself, is not construed as indicative of foreign control. I believe this interpretation came about as a result of the KLM/NWA deal.

 

[FOB]

Thank you very much. Nice link for references.