[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 771 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 771

To provide a limited exception to the restriction on foreign ownership 
   and control of the voting interest in United States air carriers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 2 (legislative day, March 3), 1993

 Mr. Danforth introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To provide a limited exception to the restriction on foreign ownership 
   and control of the voting interest in United States air carriers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airline Investment Act of 1993''.

SEC. 2. FOREIGN INVESTMENT IN AIR CARRIERS.

    (a) Definition of Citizen of the United States.--Section 101(16) of 
Federal Aviation Act of 1958 (49 App. 1301(16)) is amended by striking 
``and in which'' and all that follows and inserting in lieu thereof 
``and to which either of the following apply:
                    ``(i) at least 75 percent of the voting interest of 
                the corporation or association is owned or controlled 
                by persons who are citizens of the United States or of 
                one of its possessions; or
                    ``(ii) at least 51 percent of the voting interest 
                of the corporation or association is owned or 
                controlled by persons who are citizens of the United 
                States or of one of its possessions, and the country of 
                nationality of each non-United States citizen who owns 
                or controls any voting interest of the corporation or 
                association implements, through its laws and 
                enforcement, an open skies agreement with the United 
                States.''.
    (b) Definition of Open Skies Agreement.--Section 101 of the Federal 
Aviation Act of 1958 (49 App. U.S.C. 1301) is amended by inserting 
immediately after paragraph (30) the following new paragraph:
            ``(30A) `Open skies agreement with the United States' means 
        an agreement between the United States and one or more other 
        countries in which each such other country guarantees to the 
        corporate and other citizens of the United States the 
        following:
                    ``(A) Open entry for air carriers of the United 
                States on all air transportation routes to and from 
                such country.
                    ``(B) Unrestricted capacity and frequency for air 
                carriers of the United States on all such routes.
                    ``(C) Unrestricted air transportation route and 
                traffic rights for air carriers of the United States 
                between any point in the United States and any point in 
                such country, including no restrictions as to 
                intermediate points and points beyond, change of gauge, 
                routing flexibility, coterminalization, or the right to 
                carry Fifth Freedom traffic.
                    ``(D) Double-disapproval pricing for air carriers 
                of the United States providing Third and Fourth Freedom 
                transportation to and from such country.
                    ``(E) Liberal arrangements for charter air carriers 
                of the United States that are at least as unrestricted 
                as arrangement for the charter air carriers of any 
                other country, regardless of the origin of the flight.
                    ``(F) Liberal cargo arrangement, using criteria 
                that are at least as comprehensive for all-cargo air 
                service of the United States as those provided for any 
                air carrier that carries persons and also property or 
                mail.
                    ``(G) Earnings conversion and remittance 
                arrangement under which air carriers of the United 
                States can convert earnings in such country into the 
                hard currency of any other country and remit to the 
                United States promptly and without restriction.
                    ``(H) Open opportunities for air carriers of the 
                United States to share flight codes with air carriers 
                of such country.
                    ``(I) The right of air carriers of the United 
                States to perform and control their airport functions 
                in such country that support their air transportation 
                operations to, from, or between points within such 
                country.
                    ``(J) Procompetitive provisions on commercial 
                opportunities, user charges, fair competition, and 
                intermodal rights.
                    ``(K) Nondiscriminatory operation of and access for 
                computer reservation systems, guaranteed by the 
                country's explicit commitment.
                    ``(L) Equivalent right to financial investment in 
                the air carriers that fly such country's flag.''.

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