bad news for US domestic airlines

[whatkindoffreshhell]

Yesterday Congress turned down an opportunity to allow increased foreign ownership of United States' airlines.

The amendment, backed by the Bush administration, would have raised the threshold from 25% currently allowed.

Opposed by Continental and organized labor unions, the amendment was the first real public test of the current law.

Even with the support of legacy carriers and House Speaker Dennis Hastert (R-Il) the proposal was easily defeated.

Jake Brace, Al Crellin and a host of labor leaders were not available for comment.

 

[whatkindoffreshhell]

Again this week the Bush administration has renewed its push to allow increased foreign ownership of US airlines.

This issue is linked to the "Open-Skies" agreement currently being negotiated with the EU. The EU wants the opportunity for increased ownership stakes in US carriers. The USA wants (among other things) increased access to LHR.

Continental Airlines and organized labor are leading the resistance to increased foreign ownership.

All of the above has been reported by the WSJ.


When the foreign airlines are allowed to increase their stake (this is inevitable folks)
which domestic carrier will be the first target?