WASHINGTON, April 4 (Reuters) - US Airways Group Inc. (LCC.N: Quote, Profile , Research) Chief Executive Doug Parker said on Wednesday that domestic airlines do not need changes in the U.S. foreign investment law to raise capital.
Appearing at a U.S. Chamber of Commerce aviation conference, Parker also downplayed the benefits of any consolidation between domestic and overseas carriers.
"If a foreign carrier acquired a U.S. airline we would still have too many airlines flying around the U.S., and that foreign carrier would probably find it in its interest to merge with another U.S. carrier," Parker said.
While Parker said US Airways was not opposed to easing the long-standing federal restriction on overseas investment, he said the change simply was not needed.
He said US Airways raised billions in debt for its failed bid for bankrupt Delta Air Lines (DALRQ.PK: Quote, Profile , Research) this year. "You don't need to go to foreign markets to raise capital," Parker said.
As part of a newly negotiated "open skies" agreement to further liberalize trans-Atlantic aviation, the United States and European Union are scheduled to discuss prospects for loosening restrictions that limit overseas investors in domestic airlines to 25 percent voting stock.
Congress has twice halted attempts by the Bush administration to relax the investment law. European governments want their airlines and investors to have greater access to U.S. airlines. There is little if any overseas investment in American airlines currently.
The administration has said the U.S. airline industry, with two carriers in bankruptcy and struggling to make money, would benefit from a new source of capital if international investors could participate in a meaningful way.
Appearing at a U.S. Chamber of Commerce aviation conference, Parker also downplayed the benefits of any consolidation between domestic and overseas carriers.
"If a foreign carrier acquired a U.S. airline we would still have too many airlines flying around the U.S., and that foreign carrier would probably find it in its interest to merge with another U.S. carrier," Parker said.
While Parker said US Airways was not opposed to easing the long-standing federal restriction on overseas investment, he said the change simply was not needed.
He said US Airways raised billions in debt for its failed bid for bankrupt Delta Air Lines (DALRQ.PK: Quote, Profile , Research) this year. "You don't need to go to foreign markets to raise capital," Parker said.
As part of a newly negotiated "open skies" agreement to further liberalize trans-Atlantic aviation, the United States and European Union are scheduled to discuss prospects for loosening restrictions that limit overseas investors in domestic airlines to 25 percent voting stock.
Congress has twice halted attempts by the Bush administration to relax the investment law. European governments want their airlines and investors to have greater access to U.S. airlines. There is little if any overseas investment in American airlines currently.
The administration has said the U.S. airline industry, with two carriers in bankruptcy and struggling to make money, would benefit from a new source of capital if international investors could participate in a meaningful way.
