US rules Sample Clauses

US rules. On the other side of the Atlantic, the situation is considerably different, in spite of the motto of the country is liberalization. Foreign interests control in an American airline can not exceed 25% or one third of its board of directors. This restriction was created in 1920s when the memories of the World War I were still very present84. There is, however, a nuance in the Civil Aeronautics Act 1938 stating that an American air carrier should be owned or controlled by American citizens in the opposite proportions expressed above. By using this distinction between ownership and control, the Department of Transportation (DOT) has already allowed KLM, through its subsidiary, Wings Holdings, to increase its non-voting 83 Minutes of the 8th of the Specific Group of Air Policy from CLAC, 8/03/2004, Annex 2 p.12 available at xxxx://xxxxxxx.xxxx.xxxx.xxx/Reuniones/2004/CE66/NE/66NE04.pdf 84 XXXXX Xxxxxxx, op.cit note 69 equity in Northwest Airlines to 49%85. According to this Department, this decision was justified ‘to reflect more accurately today’s complex, global corporate and financial environment, consistent with the requirement for US citizen control’86. It is interesting to point out that at that time of the first Open Sky agreement between US and a third country was being discussed. The third country was exactly the Netherlands, KLM’s mother land. The agreement entered into force in 1992. This arrangement was possible in order to succeed the first agreement. In other words, regarding the foreign ownership, the DOT revises its position, even though without changing the law, because it not only took into consideration the new complex world and but it also answered positively to the political pressure.
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