Who Would Run Things?
Foreign control of domestic airlines continues to be a hot topic
in Washington, and continues to be the reason a new Open Skies
Agreement between the US and the European Union still hasn't
been implemented. The issue isn't so much one of who owns the
business... but more one of who runs the business.
While the Bush administration sees changing the rules to allow
foreigners a greater say in how to run an airline, many lawmakers
on Capitol Hill worry that giving outlanders keys to the air
carrier will compromise both jobs and homeland security.
Earlier this month -- in an attempt to appease critics -- the
administration revised its proposal to say US citizens on the board
of any domestic airline must have the right to veto any decision
made by an overseas investor. But if that flies, it won't be up to
the Department of Transportation or the FAA to oversee management
of airline assets. Instead, that job would shift to the Departments
of Defense and Homeland Security.
That still doesn't satisfy a lot of lawmakers, who say foreign
operators would still be able to control routing, schedules, and
pricing here in the US.
The American Chronicle
reports that also riled folks like Continental Airlines President
Jeffrey Smisek, who in a statement before a February Congressional
hearing on the matter said "the right to control US airlines would
be given away for rights of little to no value for US combination
airlines and the customers they serve."
"London’s Heathrow, Europe’s largest and most
significant airport for US-Europe travel, is closed to entry and
would remain effectively closed to additional US airlines, even if
the multilateral Open Skies Agreement were signed," said Smisek.
"This is because absent the provision of competitive, economically
viable slots and facilities at Heathrow for US airlines, the
greatest single impediment to free and fair US-Europe competition
will remain in place."
Oregon Republican Congressman Peter DiFazio takes a different
tack. He points out to the Chronicle that many EU member countries
opposed the invasion of Iraq. Had foreign investors controlled more
airlines... could they have refused a call-up of the Civil Reserve
Air Fleet? If that happened, what would have been the impact on our
ability to move troops into the combat zone?
The issue is still very much up in the air, with Europe still
refusing to approve the Open Skies agreement until the EU gets its
way on this issue. Several members of Congress say the
administration is simply biding its time... hoping the issue will
cool down enough to pass the new regulations without approval from
Capitol Hill.