BA chairman sees relaxation of US airline ownership laws
30.06.08
US airlines could start seeking foreign investments and pushing for a relaxation of US airline ownership laws to cope with financial problems, British Airways Chairman Martin Broughton told the Wall Street Journal in an interview published today.
The US currently forbids foreigners from holding more than 25% of the voting stock in a US airline or from indirectly controlling any US carrier. The senior management positions must also be held by Americans.
However, Mr Broughton said: ‘It could be the financial exigencies of the day that finally make for a breakthrough. Any rational director of a US airline should welcome foreign investment, if it's available.’ He added that labour unions - strongly against foreign ownership in the past - should also welcome foreign investment in a time of rising fuel prices and slumping demand.
BA does not expect to make a big investment in a US carrier soon, Mr Broughton told the Journal.
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