| The United States Department of Transportation | | | | needed when we ran out because they didn't |
| (DOT) on February 8, 2005, presented its decision | | | | support the war." |
| before the U.S. House of Representatives House | | | | Should the Congress fail to create legislation to block |
| Aviation Sub-Committee, to change a rule which | | | | the proposed rule it would take effect, even though |
| would clear the way for foreign corporations to own | | | | most U.S. airlines with the exception of cargo carriers, |
| and control U.S. airlines. But members of the House | | | | FEDEX and UPS as well as United Airlines, having |
| Aviation Sub-Committee were all in agreement that | | | | recently reemerged from bankruptcy, are opposed |
| the DOT may lack the legal authority to unilaterally | | | | to it. John Byerly, Deputy Assistant Secretary of |
| make such a change. Yet it does not begin to reveal | | | | State has maintained that in order for the EU to |
| all of the implications of such a historic shift in policy | | | | approve the Open Skies Agreement it is conditional |
| in bypassing the U.S. Congress in order to do so. | | | | on easing foreign ownership rules. But according to |
| Trade negotiations with the European Union to loosen | | | | the Government Accountability Office, airport |
| up regulations in ownership of U.S. airlines is seen as a | | | | capacity limitations such as at Heaththrow would not |
| tradeoff by the DOT in order for the U.S. to gain | | | | be corrected by a deregulated agreement. |
| greater access to landing at London's Heathrow | | | | Rep. James Oberstar (D-MN), ranking Democrat on |
| Airport, where presently only American Airlines and | | | | the House Transportation and Infrastructure |
| United Airlines have limited service there. Known as | | | | Sub-Committee, in order to counter the proposed |
| the Open Skies Agreement, lawmakers in both | | | | rule change introduced legislation that would require |
| parties believe that this proposition transcends 'free | | | | the rule be put on hold for one year, allowing the |
| trade' or globalization as it becomes an issue which | | | | Congress to review its ramifications on national |
| directly impacts labor and national security. | | | | defense and homeland security, which are primary |
| Currently, U.S. law requires that U.S. airlines must be | | | | issues which must initially be addressed. |
| under the "actual control" of U.S. citizens in order to | | | | And while possible ownership of U.S. airlines may be |
| be licensed for operation. And for corporations, 75% | | | | permitted within a year, control of operations and |
| of the voting interest must be held by U.S. citizens | | | | security of six U.S. ports will be given to the United |
| and 66% of its board of directors and officers must | | | | Arab Emirates and based in Dubai. The London-based |
| also be U.S. citizens. But Secretary of Transportation, | | | | Peninsular and Oriental Steam Navigation Co. was |
| Norman Mineta, in a statement in November 2005 | | | | purchased on February 13, 2006 by Dubai Ports |
| said that the rule change would be an "historic | | | | World. The deal is expected to be finalized on March |
| opportunity to increase travel, reduce fares, expand | | | | 2, 2006. Peninsular and Oriental Steam Co. is the |
| commerce and bring two continents closer together | | | | world's fourth largest ports company and the sale |
| than ever before. It provides new opportunities for | | | | affects the commercial U.S. ports of New York, New |
| U.S. and European airlines, healthier competition for a | | | | Jersey, Baltimore, New Orleans, Miami and Philadelphia. |
| growing travel market and greater connection | | | | The Committee on Foreign Investment in the U.S. |
| between cities and towns of all sizes on both sides | | | | (CFIUS) is a secretive government panel comprised |
| of the Atlantic." | | | | of designees from the Department of Treasury, the |
| But the President of the Air Line Pilots Association, | | | | Department of Defense, the Department of Justice, |
| Intl. has a much different opinion. Captain Duane | | | | the Department of Commerce, the Department of |
| Woerth testified before the House Aviation | | | | State and the Department of Homeland Security. In |
| Sub-Committee claiming, "Changes of this magnitude | | | | January 2006, the Bush administration appointed a |
| should be undertaken not be an administering agency | | | | former Director of Operations for Europe and Latin |
| but by the legislative branch. Pilots spend their entire | | | | America for Dubai Ports World as the new Maritime |
| careers accumulating the seniority required to gain | | | | Administrator within the Department of |
| access to international flying opportunities. In an era | | | | Transportation, raising more than a few eyebrows. |
| when the career expectations of pilots and other | | | | But most puzzling to lawmakers is how Dubai, which |
| airline workers already have been repeatedly | | | | provided most of the financing for the 19 hijackers |
| frustrated by airline bankruptcies, furloughs, wage | | | | on 9/11/2001, will now be overseeing the very port |
| concessions, pension plan terminations, and the like, it | | | | where nearly 3,000 lives were claimed that day. And |
| would be a crowning blow for the U.S. government | | | | Dubai was the base for much of the terrorist planning |
| now to adopt a policy that would tend to eliminate | | | | and operations for the attacks in New York and |
| international flying by U.S. carriers." | | | | Washington, according to the FBI. |
| Should the new rule be adopted, with exception of | | | | Since the Bush administration considers Dubai and the |
| few areas, all airline operations, including prices, | | | | UAE a vital ally in the war against terrorism, it |
| scheduling markets, fleet structure, marketing and | | | | approves of the sale. However, it raises vital |
| alliances have the option of being controlled by | | | | questions of U.S. national security and homeland |
| foreign investors. Additionally, U.S. labor law | | | | security policies at ports where presently less than |
| protections could be compromised and employees | | | | 5% of all cargo is inspected. And having an Islamist |
| forced into losing out by being replaced by foreign | | | | nation in charge of U.S. ports arguably makes little in |
| employees. Aviation safety could be jeopardized as | | | | allowing it to dictate port operations, given that U.S. |
| foreign-controlled management need meet only | | | | ports remain top terrorist targets. |
| minimum FAA standards, far short of the present | | | | With the Department of Homeland Security still |
| programs and practices U.S. airlines presently accord. | | | | struggling to implement systems and operations to |
| Surprisingly, the Department of Defense as well as | | | | secure U.S. ports, allowing Dubai to run the ports |
| the State Department have agreed with the DOT on | | | | could be a gateway for contraband, weapons of |
| this issue. But for several Congressmen, it does not | | | | mass destruction and arsenals, as well as hiring |
| pass muster and especially as concerns the Civilian | | | | practices without proper scrutiny, including the quality |
| Reserve Air Fleet (CRAF) which is used to transport | | | | of security which would have to conform to U.S. law. |
| U.S. troops including in times of war. The Open Skies | | | | Steve Coleman, Port Authority of New York/New |
| Agreement would have to be redrafted to | | | | Jersey spokesman stated, "We need to take a real |
| accommodate such. According to Rep. Peter DeFazio | | | | close look at security before we approve such a |
| (D-OR), "During the Gulf War a European Union | | | | company. |
| member didn't supply us with a type of carrier we | | | | |