One lawmaker said that he would try to delay the agreement.
The open-skies agreement with the European Union would allow European companies to increase their ownership stake in U.S. airlines, while keeping a 25% cap on voting stock. The deal would also ease restrictions on flights between E.U. nations and the United States by foreign and domestic carriers.
Transportation Department officials vowed that foreign companies would not have a major impact on the way U.S. carriers do business, but lawmakers are squeamish about the idea of foreign influence on domestic airlines.
The government agency is preparing to enforce the new rules as early as October, giving foreign companies the chance to invest in and make management decisions for U.S. airlines.
The proposal also would allow flights between the United States and Europe with few restrictions, and strike the agreement called Bermuda 2 between the United States and the United Kingdom that limits the number of carriers, fares, airports and cities served.
Supporters of the agreement, such as United Airlines and Boeing Co. said that the changes could help bail domestic carriers out of financial instability. They insist that current rules are out of date in a growing global economy.
United, which only recently emerged from bankruptcy protection, has significant global partnerships, and UAL executives think that an open-skies agreement would further bolster its competitive capabilities.
Market Watch
The open-skies agreement with the European Union would allow European companies to increase their ownership stake in U.S. airlines, while keeping a 25% cap on voting stock. The deal would also ease restrictions on flights between E.U. nations and the United States by foreign and domestic carriers.
Transportation Department officials vowed that foreign companies would not have a major impact on the way U.S. carriers do business, but lawmakers are squeamish about the idea of foreign influence on domestic airlines.
The government agency is preparing to enforce the new rules as early as October, giving foreign companies the chance to invest in and make management decisions for U.S. airlines.
The proposal also would allow flights between the United States and Europe with few restrictions, and strike the agreement called Bermuda 2 between the United States and the United Kingdom that limits the number of carriers, fares, airports and cities served.
Supporters of the agreement, such as United Airlines and Boeing Co. said that the changes could help bail domestic carriers out of financial instability. They insist that current rules are out of date in a growing global economy.
United, which only recently emerged from bankruptcy protection, has significant global partnerships, and UAL executives think that an open-skies agreement would further bolster its competitive capabilities.
Market Watch
