ABSTRACT
Transnational investment is a fact that lawmakers cannot ignore. According to the ICAO Air Transport Bureau, foreign investors, including foreign air carriers, owned 166 of the 984 air carriers operating worldwide in 2001. This trend affects the airlines of developing countries and developed countries alike, 1 since foreign ownership of all airlines has increased.2 Yet despite this apparent evolution, States have generally maintained foreign ownership limitations on airlines,3 and while there are progressively more signs of relaxation of these restrictions, it is unlikely that the 'ownership and control principle' will be abandoned anytime soon. Thus, the paradox of the airline industry remains firmly entrenched, particularly in the US where national restrictions on airline ownership are still very strict.
