US blocks foreign airline ownership plan
Stalled transatlantic open skies talks received a further blow as the US rejected a proposal to allow foreign investors more control of airlines in America.
US transportation secretary Mary Peters threw out the plan, casting doubt on the future of negotations with the European Union on a new air travel treaty.
Peters reportedly acted after reviewing public comments about the proposal, which would have lifted the 25% foreign ownership ceiling in US carriers.
“The department needs to do more to inform the public and Congress about the benefits of allowing more international investment,” she said.
Talks about increasing competition on air routes between the US and Europe have been ongoing for years with little or no progress.
European transport commissioner Jacques Barrot described the scrapped proposal as an “essential element” to concluding a new aviation agreement, Forbes.com reported.
But Peters claimed that the US was still committed to seeking an open skies agreement with Europe when talks are set to resume in the new year in Brussels.
Report by Phil Davies
Phil Davies
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