The Time To Rethink Airline Ownership Restrictions ...

... may be upon us, and airport officials embrace a new regimen. At least, airport officials whom I discussed the topic with at last week’s annual meeting of the Airports Council International-North America in Pittsburgh say it’s time for a change. Comments ACI-NA president Greg Principato, “Our view as an organization has been a very liberal one in the classic sense. We should have Open Skies agreements that are really open skies; we should have liberal investment regimes. The system we have now of alliances has sort of been cobbled together as a way around all the restrictions that we and others have. If it’s a global business it should be treated as such. “The two big obstacles that people usually raise are labor and national defense. I think there are ways to deal with those. On the labor side, I think you have to make part of the proposal that the labor agreements in the U.S. would remain in force. They need some certainty that the protections they have in place would remain. If there’s a national defense concern, you make clear up front that in a time of need the aircraft would be available … regardless of ownership. The Exon-Florio Act allows the U.S. government to look at the national security implications of any foreign investment. That could be applied.” G. Hardy Acree, the outgoing chair of ACI-NA and director of the Sacramento County Airport System, comments, “It’s not a question of if, but a matter of when.” He points out that since airline deregulation in 1978 the U.S. system has been transformed. Easing foreign ownership rules is the logical next step. Incoming ACI-NA chair Frank Miller, who is director of the San Antonio airport system, takes it a step further, calling for cabotage – allowing foreign carriers to fly point-to-point within the U.S., which he sees as enhancing competition. Of course, he adds that any such deal with another country would need to be reciprocal. W.A. ‘Bill’ Restall, chair of the Canadian Airports Council and head of the Saskatoon Airport Authority, calls it an evolving, dynamic situation. “I’m interested in competition in my market, as a consumer,” he says. Max Moore-Wilton, chair of ACI World, comments that “the challenges facing aviation are global challenges.” Rethinking airline ownership is at the top of the list. I suspect the folks at Mexicana Airlines would like to be able to consider alternative ownership options. Thanks for reading. jfi