Bipartisan Group Sends Letter To President

A plan to ease rules restricting foreign control of US airlines is facing stiff congressional opposition. Leading the charge is a bipartisan group headed by house transportation committee member and democrat Jim Oberstar (pictured at right).

Tuesday, the lawmakers sent a letter to the White House asking President Bush to drop the plan.

The DOT-proposed idea is intended to boost European Union support for the so-called open-skies agreement. The major sticking point is who controls US airlines. Although ownership of US airlines must remain within US borders, the proposal would increase foreign control by allowing more foreign investment.

Members of the bipartisan group say the DOT doesn't have the authority to enact a rule change such as that proposed.

The letter sent to White House Chief of Staff Josh Bolten read in part, "Congress has taken a strong position that a major change to the current law regarding foreign ownership of US airlines should be accomplished only by congressional action, not unilaterally imposed by the executive branch."

Supporters say the open-skies pact will increase competition, and therefore the number of routes between the US and Europe. Those opposed say allowing outside control of US airlines is a national security issue.

Earlier this year the House voted overwhelmingly to reject the plan, with a similar stance taken by a key senate committee. The plan is also facing opposition from labor unions and a few airlines.

The administration fears removing the proposed rule change might derail talks between the US and the European Union and delay or even eliminate passage of the open-skies agreement.

FMI: www.house.gov, www.dot.gov