Airline Told to Shut Down: The Transportation...

Airline Told to Shut Down: The Transportation Department ordered Hawaii-based Discovery Airways closed down in one week, accusing the 3-month-old carrier of violating U.S. laws on foreign ownership. The department ordered the airline to cancel its flights and inform passengers how to obtain refunds or alternate transportation. Federal law allows U.S. airlines to have no more than 25% foreign ownership and requires that they be controlled by U.S. citizens. Discovery is 75% owned by Philip Ho, president of the Japanese Nansay Corp.’s Hawaii operations. Other airlines in the area claim that Nansay bankrolled Ho’s stake.