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Continental: DOT Foreign Ownership Proposal Falls Short

May 4, 2006 By: Frederick Folmer Travel Agent

Continental Airlines Thursday says a supplemental proposed rule by the DOT that would allow foreign control of U.S. airlines fails to resolve what Continental said were "significant legal and policy concerns" raised by Congress, industry and labor. Under the proposal, Continental said, foreign investors would be allowed to control all significant decisions at a U.S. carrier. "The DOT has abdicated its responsibility to ensure actual control by U.S. citizens," a Continental spokesperson said in a statement. The airline predicted that the proposed rule is unlawful and would not withstand Congressional scrutiny or inevitable court challenges.

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