Foreign Airline Control Raises Concerns in House Appropriations Committee

March 9, 2006
Resistance to foreign ownership of U.S. port operations spilled over into the aviation arena when a key congressional committee told the Bush administration to postpone a plan to allow more foreign control of domestic airlines.

Resistance to foreign ownership of U.S. port operations spilled over into the aviation arena when a key congressional committee told the Bush administration to postpone a plan to allow more foreign control of domestic airlines.

The House Appropriations Committee on Wednesday passed a resolution directing the Transportation Department to hold off for 120 days on its proposal to give foreign investors in U.S. airlines more latitude to influence management decisions.

"The committee believes that the U.S. aviation industry is part of our critical infrastructure as are the ports," said the resolution, which passed by voice vote and doesn't have the force of law.

The Republican-controlled Congress is rebelling against President Bush by threatening to block a Dubai-owned company from taking over operations at several U.S. ports.

The port controversy is fueling opposition to a proposed regulation that would give foreign airline investors more control over marketing, flight routes and what kinds of planes to fly. Non-U.S. citizens still couldn't own more than 25 percent of a U.S. airline's voting stock.

Reps. Frank LoBiondo, R-N.J., and James Oberstar, D-Minn., are sponsoring legislation backed by 153 other members to prevent the regulation from going into effect for at least a year and to give Congress the right to veto it.

Democratic Sens. Frank Lautenberg of New Jersey and Daniel Inouye of Hawaii sponsored a similar bill.

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