UAL Endorses Plan To Allow More Foreign Investment
Source: Bloomberg
United Airlines is the first major US airline to endorse the plan giving non-US investors more say in running US carriers
WASHINGTON, Sun: United Airlines (UAL) endorsed a Bush Administration plan to increase foreign investment in US airlines, saying US carriers are now limited in their ability to raise capital.
Bush’s Transportation Department on November 2 proposed giving non-US investors more say in running US airlines.
The department said the change would attract capital up to the current investment limit of 25 per cent of voting stock and 49 per cent of total equity.
United, a unit of UAL Corp and the world’s second- largest carrier, today became the first major US airline to endorse the plan.
“If the US domestic airline industry is to regain its global leadership position, artificial limitations on the ability of long-term strategic investors, regardless of nationality, to participate in the industry and earn adequate returns on their investment need to be removed,” United told the department.
Alaska Airlines opposed the plan today, saying only Congress should make changes in the foreign investment law.
US Airways Group Inc in a filing said it had concerns about the plan.
Continental Airlines Inc, more than 70 US lawmakers and organised labour groups have previously come out in opposition to the plan.
