Airline Unions Preserve Foreign Ownership Ban 

December 6, 2006 - After months of intense pressure from the Machinists Union and others, the Department of Transportation has withdrawn its proposal to allow foreign interests to control U.S. airlines. 
 
“The Bush administration’s ill-advised proposal faced opposition from airline employees and Congress,” said General Vice President Robert Roach, Jr.  “The IAM lobbied hard on Capitol Hill to oppose the DOT's plan, making it our primary legislative goal for the airline industry. The proposal’s only support came from airlines that care more about profits than promoting sound aviation policy.”
 
Key Congressional opponents include Senators Daniel Inouye (D-HI), Byron Dorgan (D-ND), Arlen Specter (R-PA) and Frank Lautenberg (D-NJ), and Reps. James Oberstar (D-MN), Frank LoBiondo (R-NJ), Jerry Costello (D-IL), Steve LaTourette (R-OH), Ted Poe (R-TX) and John Olver (D-MA). 
 
Foreign ownership of U.S. airlines is currently capped at 25 percent.  Several members of the House Transportation Committee said that more foreign control of U.S. airlines was a threat to national security and they were glad to see the idea dropped for now.  The issue of allowing foreign control of U.S. airlines, however, may not be completely dead. 
 
“The department needs to do more to inform the public, labor groups and Congress about the benefits of allowing more international investment,” said Secretary of Transportation Mary Peters. “The Machinists Union stands ready to work with the Bush administration to promote the U.S. aviation industry, but we will not allow foreign interests to control the destiny of U.S. aviation workers,” said GVP Roach.