FOREIGN TAKEOVERS OF UNITED STATES AIRLINES: FREE TRADE PROCESS, PROBLEMS, AND PROGRESS

Civil aviation has become an international industry, and many foreign air carriers seek access to the lucrative U.S. aviation by purchasing shares of U.S. airlines. However, the Federal Aviation Act imposes limits on foreign ownership. In this article, the author argues that although the Department of Transportation previously exercised its discretion by interpreting liberally its statutory mandate, recently the agency has appeared reluctant to encourage globalized aviation and, in fact, has reversed the trend toward "open skies." The author analyzes the "changed landscape" of civil aviation, noting that troubled U.S. carriers welcome capital from any source. He advocates a strategy of "liberalizing for leverage" in aviation diplomacy; the U.S. should implement a policy of explicit linkage between more liberal treatment of U.S. carriers overseas and permissive allowances for foreign investment in U.S. airlines.

  • Corporate Authors:

    Harvard Law Review Association

    ,    
  • Authors:
    • Grant, T D
  • Publication Date: 1994

Language

  • English

Media Info

  • Features: Appendices; Tables;
  • Pagination: p. 63-151
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00667903
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 25 1994 12:00AM