NATA Questions Risk of Potential Ownership Rule Change

The National Air Transportation Association (NATA) is carefully reviewing a bill that would enable increased foreign ownership in U.S. air carriers, questioning whether such a change would introduce certain risks. Rep. Dave Brat (R-Virginia), a member of the House Travel and Tourism Caucus, last week introduced the Free to Fly Act (H.R.5000), calling for a reduction in the mandatory U.S. ownership requirement for U.S. air carriers from 75 percent to 51 percent. The bill further would alter the requirements of the makeup of an air carrier board from two-thirds U.S. citizens to 51 percent.

Brat called the change long overdue, saying curbing investments hurts American businesses. NATA, however, is taking a cautious approach to the change, which it notes would affect Part 135 operations. “This would be a significant change in current law and presents some concerns over risks to aviation safety and security,” the association said, adding it would work with its Air Charter Committee to review the potential ramifications.

The foreign ownership limitations became an issue for the air charter industry in 2007, when the FAA revoked the Part 135 certificate of AMI Jet Charter dba TAG Aviation USA because Switzerland-based TAG owned 49 percent of AMI.