Ladies and Gentlemen:

Foreign ownership of the United States (US) aviation industry continues to be a pervasive threat and dictates we continue our efforts to protect our vital national industry and profession.

Virgin America, a spin off of the Virgin Group headed by Richard Branson, has revised its application to the Department of Transportation (DOT) for approval to operate US domestic flights, from a base in San Francisco.  Along with its application, Virgin America is running a public relations campaign designed to dazzle regulators, public officials and passengers alike with its purported ultra-chic start up airline.  Certain foreign investors hope that the quirky, but likeable Richard Branson will distract regulators, lawmakers and the public just long enough to set a standard with Virgin America that destroys long-standing aviation law.

If Virgin America is given rights to operate as a US airline, it will set a dangerous precedent for other foreign investors to control our US airlines.

If Virgin America is given rights to operate as a US airline, it will set a dangerous precedent for other foreign investors to control our US airlines.  But we are not fooled by special interests' latest tactics to circumvent foreign ownership rules in the aviation industry.

Foreign ownership is foreign ownership.  Granting take-off clearance for this by-product of the Virgin Group will open the door to foreign ownership and control of the US aviation industry.  We live and work in an industry that has successfully extracted billions of dollars from workers over the last several years in the name of competition.  Allowing foreign ownership and direct competition within the US domestic market and as connection for our overseas flights, sets up potential for another whole sale shake up of a beleaguered industry so vital to our national interests.

What we need to consider is what is best for our US aviation industry and our careers.  Branson-Virgin may be flashy and likable, but they are not livable.  Certainly their actions are not favorable for our future.  Keep in mind, not all investors will be likeable, or even livable, for our nation.  While National security concerns alone have dictated that the basic U.S. aviation infrastructure should not be controlled by foreign interests.  It is also critically important to understand the economic consequences inherent in the absence of commitment to our communities.  Foreign control of an airline is driven purely by short term profit and not viewed as an essential component of the national aviation infrastructure.  This puts at risk the economies of the cities and states not viewed as highly lucrative. 

We need not look far beyond foreign ownership in the US auto industry, to understand the calamities of such actions.  DaimlerChrysler, a foreign owned automaker in the United States, is currently eliminating over 13,000 jobs and destroying the livelihood of many more.  It is important that we recognize the realities of the aviation industry have the potential for far greater national consequence.

We all know how aggressively the Bush Administration has pressed to raise limits on foreign ownership of US airlines.  Remember that last year the Administration tried to side-step lawmakers through a Department of Transportation (DOT) rules change that would give foreign investors and foreign airlines greater control over day to day operations of US airlines including decisions about route structures, aircraft purchasing, staffing and hiring.

Today, we continue to fight these efforts and protect the welfare of the American aviation industry.  Last year, Congress echoed our concerns in a bi-partisan vote that overwhelmingly opposed foreign ownership and control of US airlines and the DOT was ultimately forced to rescind the rules change.

This latest thinly veiled attempt to lift limits on foreign ownership is counter to the recent will of passengers, lawmakers and regulators alike within the context of the role of US Government Regulation.  The Air Transport Association (ATA) argues that the recent dire economic condition of the US airline industry makes it all the more important to eliminate "unjustified regulatory burdens."  But the public and regulators contradict the ATA's advocacy as passengers and lawmakers are reconsidering greater regulation of an industry in a near constant state of turmoil as evidenced by the renewed call for a "Passenger Bill of Rights".  In an industry that has little to no effective barriers to starting up an airline and other meaningful regulation, other than the current regulation under attack, it seems that those who view that regulation as "a heavy tax" on the industry are really serving special interests.

In the end, its politics and money that are at work as the DOT is reviewing the revised Virgin America application previously denied due to foreign ownership rules.  We must continue our advocacy and call on the DOT and Congress to exercise prudent and critical scrutiny of the renewed application, and reject it for what it is - foreign ownership of a vital national industry.

Foreign ownership is foreign ownership and our job is to keep its hands off of our industry. 

In Solidarity,

Greg Davidowitch, President
United Master Executive Council

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