Capitalists love privatized monopolies, which is what happens with globalization. And thats what United is hoping for. Since it is the only airline in the U.S. that is not teetering on bankruptcy, with foreign ownership, say ACE which is the parent company of Air Canada and rolling in dough, it could buy up its competition and we could end up with two or three airlines operating in contiental North America.
United CEO: Bring globalization to US airlines
United CEO Glenn Tilton is calling on U.S. regulators to lift ownership restrictions that limit how much of a U.S. airline can be owned by foreign investors. Such rules have so far blocked a global consolidation that some in the industry say is needed, Tilton says. "U.S. airlines should have the right to grow their businesses in the global marketplace," Tilton is quoted as saying Thursday to the Chicago Council on Global Affairs. "It's about time we abandon the policy of fragmentation," he adds. Reuters writes that "Tilton, long an advocate for international airline partnerships, reiterated his view that foreign airlines are better positioned to thrive than those in the United States partly because foreign carriers face fewer restrictions to cross-border consolidation." Current rules dictate that U.S. carriers must be controlled by American citizens, though foreign investors are allowed to hold up to 25% of a U.S. airline's voting stock. Reuters adds that "there is little or no foreign investment because of [that] long-standing federal regulation that prohibits overseas interests from having a say in airline operations."
Find blog posts, photos, events and more off-site about:
United, Open, Skies, globalization, ownership, protectionism, UnitedAirlines, AirCanada, Robert, Milton, Tilton
No comments:
Post a Comment