P.M. BRIEFING : Skinner Asks More Say in Takeovers
Transportation Secretary Samuel K. Skinner told Congress today that his department wants more say in takeovers of U.S. airlines involving foreign investors.
He told the Senate aviation subcommittee that it would have been easier if it had become involved earlier in the takeover of Northwest Airlines so he could have warned the new owners against giving KLM Royal Dutch Airlines so big a stake.
On Friday the department ordered the group buying Northwest’s parent NWA Inc., led by financier Alfred A. Checchi, to reduce KLM’s role in the deal.
Under federal law, U.S. airlines cannot be controlled by foreigners. The original deal would have given the Dutch airline 57% of the non-voting equity in Northwest and a seat on its board of directors.
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