Outgoing US Transportation Secretary Norman Mineta said the US government must push forward with its proposal to allow increased involvement in US airlines by foreign investors even though Congress has shown little appetite for change.Giving his farewell address to the US Chamber of Commerce in Washington last week, Mineta said foreign investment in US transportation infrastructure, including airports and airlines, will be critical to the future health of the aviation industry and the overall US economy.

The long-time public official, who submitted his resignation last month (ATWOnline, June 26) and whose name adorns the international airport in his hometown of San Jose, Calif., said the US transportation sector needs to face "some basic truths," namely that "the modern economy--and by extension our transportation systems--are global in nature." He boasted that the US has "some of the world's strongest transportation systems" but warned that "we will lose our competitive edge if we make a habit of turning our noses up at investors...just because they are headquartered outside the United States."

He added: "Security is, and must always remain, a foremost concern. But it is pure folly to think that economic isolationism is an option in today's interconnected world...While the rest of the world is building up its infrastructure, the United States can ill afford to close the door on much-needed investments, even international investments, in our transportation network."

Under Mineta's leadership, DOT has proposed permitting non-US citizens to exercise day-to-day authority over many aspects of US airline operations while leaving issues pertaining to safety, security and matters of national interest in the hands of US nationals. The proposal was meant to satisfy European demands concerning foreign ownership in hopes of reaching a comprehensive EU-US aviation treaty. The EU has made it clear it will not even consider an open skies agreement until after the DOT rule is finalized.

But the US House last month approved an amendment to a funding bill that blocks DOT from spending any money on implementing the proposed rule (ATWOnline, June 16). Mineta said the agency should move forward with its proposed rule despite the House action. He argued that isolationism is an impediment to aviation safety and security since the global airline network is so interconnected. "A weak link in aviation safety, anywhere, reverberates throughout the international aviation community and the global economy."