Fri, Dec 01, 2006
Bipartisan Group Sends Letter To President
A plan to ease rules
restricting foreign control of US airlines is facing stiff
congressional opposition. Leading the charge is a bipartisan group
headed by house transportation committee member and democrat Jim
Oberstar (pictured at right).
Tuesday, the lawmakers sent a letter to the White House asking
President Bush to drop the plan.
The DOT-proposed idea is intended to boost European Union
support for the so-called open-skies agreement. The major sticking
point is who controls US airlines. Although ownership of US
airlines must remain within US borders, the proposal would increase
foreign control by allowing more foreign investment.
Members of the bipartisan group say the DOT doesn't have the
authority to enact a rule change such as that proposed.
The letter sent to White House Chief of Staff Josh Bolten read
in part, "Congress has taken a strong position that a major change
to the current law regarding foreign ownership of US airlines
should be accomplished only by congressional action, not
unilaterally imposed by the executive branch."
Supporters say the open-skies pact will increase
competition, and therefore the number of routes between the US
and Europe. Those opposed say allowing outside control of US
airlines is a national security issue.
Earlier this year the House voted overwhelmingly to reject the
plan, with a similar stance taken by a key senate committee. The
plan is also facing opposition from labor unions and a few
airlines.
The administration fears removing the proposed rule change might
derail talks between the US and the European Union and delay or
even eliminate passage of the open-skies agreement.
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