Continental Rips Latest 'Open Skies' Deal

Continental Airlines vows to oppose a U.S. Transportation Department bid to give foreigners more control of U.S. airlines.

The Houston carrier said Wednesday that the Transportation Department was neglecting citizens' interests and congressional prerogatives.

The proposed Transportation rule "is still unlawful and will not withstand either congressional scrutiny or the expected court challenges. Only Congress can change the law regarding foreign control of U.S. airlines."

Foreign ownership of U.S. airlines is currently limited to 25 percent, and zero administrative control.

The Department of Transportation proposes giving foreign stake-holders of U.S. carriers more administrative control to help win EU approval of treaty that would let any U.S. carrier fly into any EU airport and any EU airline fly into any U.S. airport.

But Continental said the venture was unworkable.

"The open skies deal is anything but open, as neither it nor the (Department of Transportation) have provided for effective U.S. airline competition in the EU's most important business aviation market, London Heathrow. Under the treaty, Continental will be permitted to fly to Heathrow, but it won't be permitted to land there, as daily slots at commercially reasonable times are simply not available, nor are adequate facilities."

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