Proposal seeks to scrap foreign investment cap on airlines
One lawmaker hopes to shake up the commercial aviation industry by revising anti-competitive regulation limiting the ability of foreign entities investing in US airlines.
Republican Rep. Dave Brat is introducing the Free to Fly Act, which seeks to amend antiquated rules dating back to the 1920s.
Current legislation caps foreign ownership in US airlines at 25%.
The Free to Fly Act wants to scrap the cap altogether.
"The elimination of this outdated restriction is long overdue. As an economist, I understand that hindering investment hurts American businesses, workers and consumers. The Free to Fly Act would stimulate and expand the travel and tourism industry, creating more choices and reducing prices for consumers," said Brat.
"The current administration has successfully advocated for more foreign investment in America, and it’s time we allow the U.S. airline industry and the traveling public to benefit from outside investment as well."
The Act would require foreign-owned airlines operating domestic routes to establish a US based subsidiary employing US workers.
It has received support from a number of industry groups including the U.S. Travel Association and consumer organization FlyersRights.org.
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