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US considers raising foreign ownership limits

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Dizel8

Douglas metal
Joined
Feb 27, 2003
Posts
2,817
November 2, 2005 The Bush administration wants to ease restrictions on overseas investment in US airlines, a move that could give struggling carriers a route for fresh capital and break the logjam in transatlantic aviation talks, industry sources said on Wednesday.
Airline industry officials who did not want to be named because it is a government initiative said the Transportation Department is preparing a plan that would ease the tightly scrutinized administrative regulation barring overseas investors from exercising control of domestic carrier operations in certain circumstances.
The administration will not, according to the industry sources with knowledge of the plan, propose any changes to the strict law that caps international investment at 25 percent of voting stock.
Congress has prevented any changes in current ownership regulations, with many lawmakers arguing that control of airlines is a unique component of the American business identity and necessary to ensure national security especially after the September 11, 2001, attacks.
Labor groups and their political allies have also fought hard to prevent ownership changes that they claim could undermine their jobs.
"We've seen dozens of industries from steel to autos to textiles go over the side as a result of globalization or allowing foreign entities to take them over," said Edward Wytkind, president of the AFL-CIO's transportation trades unit.
But US airlines could lose up to USD$10 billion this year, according to industry estimates. Three big carriers are in bankruptcy and face huge hurdles in raising cash to satisfy creditors and potential investors.
Aviation consultants said removing the limits on control might satisfy European negotiators at recently revived talks on liberalizing transatlantic aviation. Previous talks have foundered partly on European demands for greater access to US markets.
John Byerly, the deputy assistant secretary of state for transportation affairs, said the issue is not on the negotiating table. But he said the administration has been exploring options to increase foreign investment.
"It's a good thing to do for our own industry," Byerly said.
The two sides agreed last month in Brussels on key elements of a first-stage deal. The next round of talks is scheduled for the week of November 14 in Washington.
 
I don't mind some extra capital brought in from foreign ownership. If you read the article, the max ownership would still be 49%, with 25% voting rights, and our government still will not allow foreign airlines to fly over here.(in mass--like Easyjet setting up a base here)


Bye Bye--General Lee
 
General Lee said:
I don't mind some extra capital brought in from foreign ownership. If you read the article, the max ownership would still be 49%, with 25% voting rights, and our government still will not allow foreign airlines to fly over here.(in mass--like Easyjet setting up a base here)


Bye Bye--General Lee

Then what does this initiative change? If ownership remains at 49% and voting at 25%, how does that allow more foreign captial?
 
mynameisjim said:
Then what does this initiative change? If ownership remains at 49% and voting at 25%, how does that allow more foreign captial?

Sorry, it increases the ownership to 49%, from 25% I believe. More capital is better than no capital.


Bye Bye--General Lee
 
This is Retarded...The US won't let some airline mergers happen due to anti-trust concerns but apparently it is OK for foreign entities to own the airlines.
 
Just my 02c...

As most American managers are clearly incapable of running airlines efficiently and at a profit (ensuring job security and steady income) then what exactly is so bad about letting talented, rich foreign companies own and run the airlines for you? It will mean growth, advancement, foreign access, shiny new jets and jobs...is this bad? I'm not talking about the easyjets or ryanairs here, but class acts like BA, AF/KLM, SQ and CX.

Don't be so xenophobic...we are all supposed to be discoverers, so open your mind a little.
 
Cpt. Underpants said:
Just my 02c...

As most American managers are clearly incapable of running airlines efficiently and at a profit (ensuring job security and steady income) then what exactly is so bad about letting talented, rich foreign companies own and run the airlines for you? It will mean growth, advancement, foreign access, shiny new jets and jobs...is this bad? I'm not talking about the easyjets or ryanairs here, but class acts like BA, AF/KLM, SQ and CX.

Don't be so xenophobic...we are all supposed to be discoverers, so open your mind a little.


And since "Keep Discovering" is Emirates motto, let's not forget them either ;) .


TP
 
Get a perpsective! How does this impact pilots!

Please provide a comparative analysis on the maritime industry and the airline industry. Why are there very limited martime frieghters with US Citizen captains, officers and crews. Why are there no maritime ships registered in the US?

If it is ok the foreign ownership be changed from 25% to 49% today, then will it be ok later to change it to 50+%.

If foreign ownership at 50+% means foreign control, and management controls hiring, who will they hire? Who are they obligated to employ?

If a foreign entity controls an airline operating inthe US, must they use US registered aircraft? If they can't can they lobby to change the legislation?

Two of many reasons in our favor... CRAF and national security.


Maybe the demise of the Air Line Pilot profession will occur faster than we think. In less than 10 years we could be finished.


If we don't even understand what is going on how can do a thing to stop it... The people that want to change the ownership laws...do not care about us as Air Line Pilots. They don't care who fills the flight deck seats.

All of this will be determined on CapHill.

Prediction: in a couple of years the impact of this will hit HARD! Pilots will be taking thier bus tours to Washing DC to rally for support. By then it will be too late as the train will have already left the station....


Get informed. Get educated. Get involved! now
 
Last edited:
Gotta love Bush!

LET THE OUTSOURCING OF AMERICA CONTINUE!!! (Ok so this is a little different than outsourcing...but...)

I POROMISE in the next 3 years you will see foreign national pilots outsourced/domiciled overseas working for US Legacy Airlines flying a significant portion of the international routes. Mark my words.

Thanks George!
 

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