Bush Backs Down on Foreign Ownership of U.S. Airlines

by Mike Hall, Dec 6, 2006

In a retreat for the Bush administration, U.S. Transportation Department Secretary Mary Peters announced yesterday the Bush administration planned to withdraw a controversial rule that could have handed control of U.S. airlines to foreign interests by selling U.S. carriers to the highest bidder.

While unusual, Bush’s move—like his acceptance of the resignation of John Bolton as U.S. representative to the United Nations—is the result of the new post-Nov. 7 political reality. Earlier this year, the U.S. House and Senate voted to block the foreign giveaway—even with Republican majorities in both houses. With Democrats set to become the majority in Congress, simple arithmetic shows the scheme was doomed.

Edward Wytkind, president of the AFL-CIO Transportation Trades Department (TTD), says:

The decision answers bipartisan congressional calls for the administration to pull back this rule and strong unified opposition from America’s transportation unions. It’s our intention now to work with members of Congress and Secretary Peters to promote a strong aviation industry while protecting the jobs and long-term economic interests of U.S. aviation employees.

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