By Josh Mitchell Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- The U.S. House passed legislation Thursday to curtail international airline alliances, a move proponents said would increase competition, but which the industry warned would cost jobs.
The bill, approved on a 277-136 vote, would also boost spending on airport construction and airline safety. The Federal Aviation Administration would get $70 billion over four years to carry out the programs.
Senate support for the legislation is unclear.
Airlines strongly opposed a measure that would strip them of exemptions to anti-trust laws three years after enactment of the legislation. The exemptions allow airlines to join global alliances that coordinate schedules and share revenue.
Airlines would be able to apply for new exemptions after three years, but under possibly tougher standards.
Rep. James Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, said he pushed the measure to prevent the industry from being dominated by several conglomerates that he said would have too much power to raise ticket prices.
But the Air Transport Association, representing major airlines, said the alliances improve efficiency and service and warned that eliminating them would cost up to 15,000 jobs.
The House legislation would also toughen rules that require that 75% of a U.S. airline be owned and operated by U.S. citizens. It spells out what activities must be controlled by U.S. citizens. Current law allows the federal government to determine the matter case by case.
Oberstar said the measure is designed to ensure that foreign investors don't exert too much control over prices and schedules in the U.S. But the European Union said the provision runs counter to a landmark deal between the U.S. and EU to deregulate international air travel.
The House bill would also allow airports to charge higher fees to passengers to finance construction. The limit on the so-called passenger facility charge would increase to $7 from $4.50 per passenger, a change that lawmakers estimate would generate an additional $1.1 billion in annual revenue for airports.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
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Publié le 22 Mai 2009 Copyright © 2009 Dowjones