READ TEXT II AND ANSWER QUESTION

TEXT II

Legal Developments in International Civil Aviation

Much of the law regarding civil aviation has been developed through a combination of domestic laws and international agreements between the United States and other nations. In 1992, the United States Department of Transportation (DOT) introduced the “Open Skies” initiative and began negotiating and entering into modern civil aviation agreements with foreign countries, as well as individual members of the European Union (EU). As a result of a 2002 European Court of Justice ruling that several portions of these “Open Skies” Agreements violated EU law, the United States and the EU have been negotiating a new Open Skies

Agreement. A tentative agreement appears to exist between the parties that if enacted would, among other things, allow every EU and U.S. airline to fly between every city in the European Union and every city in the United States and would permit U.S. and EU airlines to determine the number of flights, their routes, and fares

according to market demand.

Despite this development, there appears to remain several areas of international civil aviation law that the tentative agreementdoes not address. Among them are the issues of foreign ownership and control, participation in the Civil Reserve Air Fleet Program, and cabotage. Presently, U.S. law requires that to operate as an air carrier in the United States, an entity must be a citizen of the United States. To be considered a citizen for civil aviation purposes, an entity must be owned either by an individual U.S. citizen, a partnership of persons who are each U.S. citizens, or a

corporation (1) whose president and at least two-thirds of the board of directors and other managing officers are U.S. citizens, (2) that is under the actual control of U.S. citizens, and (3) has at least 75 percent of its stock owned or controlled by U.S. citizens. Recently, however, the DOT released a Notice of Proposed Rulemaking (NPRM) that would change its interpretation of what constitutes “actual control.” If adopted, this new interpretation could have major implications for U.S. and international civil aviation.

(from //www.fas.org/sgp/crs/misc/RL33255.pdf, March 10, 2007)

The underlined expression in “as well as individual members” marks an: