WASHINGTON | Wed Apr 13, 2011 1:31pm EDT
(Reuters) - Europe is renewing its push for the United States to ease restrictions on foreign ownership of airlines, arguing that access to a steady stream of capital remains a top industry concern.

European Commission Vice President Siim Kallas said on Wednesday he had productive discussions in Washington this week, but left meetings with no assurance the U.S. government would relax ownership limits anytime soon.

"EU and U.S. airlines are still managing with very small margins of profit. It's definitely lacking behind the needs of investments so the capital is urgently needed," Kallas told reporters at a EU offices.

Overseas investment in U.S. airlines has long been limited to 25 percent voting stock, an amount some carriers and investors say inhibits growth and limits industry potential in a global economy.

Airline ownership is an unresolved sore spot from landmark European Union/U.S. aviation agreements to boost competition in trans-Atlantic markets.

Other prickly issues include passenger security screening and Europe's move to include airlines in its approach for reducing carbon emissions. Kallas was reluctant to discuss security details, calling them sensitive. But he said formal protocols allow for the possibility of negotiating differences over the inclusion of airlines in Europe's emissions trading scheme.

Kallas said he came away from talks with U.S. House of Representatives Transportation Committee Chairman John Mica aware of the political challenges that proponents of changing the ownership law face. But he was not discouraged.

"There is no assurance things will move, but the understanding is constructive," Kallas said.

The fiercest opposition to relaxing the law was swept away in last year's congressional elections, leaving business friendly Republicans in control of the House and reviving hopes of those who want lawmakers to act.

United Airlines, a unit of United Continental Holdings (UAL.N), and other American carriers have at times lobbied hard for the change, which is not a pressing issue for all of them.

Organized labour and its allies in Washington are a chief hurdle to changing the law, fearing that allowing overseas control -- especially if the airline involved flew to Europe or Asia -- would reduce jobs and the influence of unions.

(Reporting by John Crawley; editing by Andre Grenon)

 

I can tell by the limited response to this thread having been started over a year ago, and ZERO responses to it till now that we're in A LOT of trouble. Pilots need to stand up and take notice!! The airlines are trying to open the doors to OUTSOURCE you.

There needs to be a zero-tolerance policy on foreign ownership. This would be the doors opening to "cabotage".

Cabotage /ˈkæbətɨdʒ/ is the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country.


Before you know it all airliners here in the USA will be flagged in the Bahamas but operating from US point to US point, and crewed by commuting Filipinos willing to work for pennies on the dollar. Just like the cruise-lines are now. This would be The Airlines for America's wet dream come true. Ah-ahh! Not on my watch!.

 

I see that post is close to a year and half old but I will say Dalpa has been thinking about this. The following is from our new contract.

"The Company will join the Association in opposing any change in U.S. law that would permit foreign air carriers to engage in cabotage. and in opposing any change in U.S. law that would permit persons other than U.S. citizens to increase their ownership above the level permitted as of March 1, 2012, or to acquire control of Delta."

And who is heading up A4A now? Isn't it Richard A. the CEO of Delta?

Denny

 

I agree. We are all so distracted by scope, that no one seems to notice this issue which is ten times the threat that scope will ever be. The public will support this 100% when they see that it will lead to the happy days of $99 fares again.

 

The airlines are not far from turning into cruise lines.

 

Sorry boys but foreign ownership doesn't mean foreign pilots, unless of course they are giving all their crews green cards too.
Are all of the hondas, toyotas, bmw. mercedes etc built in america built by foreigners?
The comparison to the cruise ships is retarded. all their ships are flagged in foreign countries. The airlines can already do that (TACA) but they still operate with crews from their own country.
TWA, PanAM, United etc all use to operate in europe with 727 and other aircraft, none of the european countries complained, neither did alpa. all of their pilots were american. why did they just use so albanians? would have been much cheaper.

 

Ironic, seeing as how all the foreign car makes you listed, ship their profits back over seas, while at the same time stifling unionized labor in their factories and paying less than their American counterparts.

 

Funny how chrysler, GM, and ford move their factories to mexico and canada, yet the unions can't stop them, leaving the american worker unemployed, so I guess that is better than having a foreign company bring jobs back to america.
Smooth.

 

That's a philosophical argument that has been going on since, well since organized labor vs managemant has been around.

 

True, but don't you think this is the path to cabotage- probably through 'code-share' agreements? Maybe it doesn't matter who owns US airlines, but when they farm out domestic routes to foreign airlines, then it is in fact foreigners who will be doing our jobs, no?
I agree that the cruise ship comparison doesn't apply- as cruise ships generally sail only international routes.