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Within five years, the United States will succumb to European pressure and allow its domestic airlines to be purchased by foreigners.
Such a scenario would make Richard Branson's day.
Branson, chairman of Virgin Atlantic Airways, has been very vocal in calling for Congress to repeal the 49 percent ownership limit by foreigners of U.S. airlines. He has said he intends to start a domestic airline in this country to compete with majors like U.S. Airways (U) and American Airlines (AMR).
Allowing him to operate a domestic airline in the United States could prove to be a windfall for the innovative Branson, who would introduce a low-fare carrier with perks not offered by other low- fare airlines to quickly establish a market share. His success, however, would come at the expense of existing U.S. carriers, who stand to lose millions if the foreign ownership ban is lifted and investors begin putting together start-up airlines and/or buying troubled or smaller carriers.
"It is time to bring the American domestic aviation industry into...