• Financial Times , Friday, November 21, 2008 10:15 AM

American Airlines CFO Tom Horton says that U.S. restrictions that cap foreign voting investment in U.S. carriers to 25% eventually must fall, and he foresees "a world when there will be a handful of global companies that can take customers and cargo anywhere they need to go."

American is currently seeking immunity from antitrust rules to form a venture with British Airways and Spain's Iberia, Justin Baer reports. Delta already enjoys immunity though its partnership with Air-France-KLM. And Continental recently agreed to join an alliance anchored by United and Lufthansa.

Horton was unsure if changes to foreign ownership rules, which would require federal action, would come during the Obama administration, but he says restricting the flow of capital into any industry is not sustainable.

But influential members of Congress remain concerned that foreign ownership could threaten carriers' commitment to the military in times of war, and union leaders worry that cross-border mergers could cost jobs. "I'm not going to let that occur on my watch," Jim Oberstar, (D-Minn.), who chairs the House Transportation and Infrastructure Committee, told the newspaper earlier this year.

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