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1986 - March DOT Ord. & Dec. [1] (March, 1986)

handle is hein.usfed/dotod0361 and id is 1 raw text is: Order 86-3-1 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY 2 1986 WASHINGTON, D.C. 1986 Issued by the Department of Transportation on the 1st day of March, 1986 Application of TEXAS AIR CORPORATION for approval of Voting Trust Docket 43825 pursuant to Section 408 of the Federal Aviation Act ORDER On February 26, 1986, Texas Air Corporation (Texas Air) filed an application for expedited approval under section 408 of the Federal Aviation Act, 49 U.S.C. 1378, of its purchase of 10 percent or more of the voting stock of Eastern Air Lines (Eastern) and its placement of the Eastern stock in a voting trust. Section 408 of the Act requires the Department's prior approval before one carrier may acquire control of another carrier. Texas Air already controls two air carriers, Continental Air Lines and New York Air, and thus may not acquire control of Eastern without prior approval. Section 408(f) establishes a presumption that one carrier's acquisition of ten percent of a second carrier's voting stock constitutes the acquisition of control of the second carrier. According to its application, Texas Air will hold in the voting trust the Eastern shares it purchases in excess of ten percent of Eastern's stock while the Department considers its application to acquire control of Eastern through the acquisition of all of its stock. Texas Air represents that the terms of the voting trust are essentially the same as those approved by the Department in other acquisition cases. The voting trust will require the trustee to vote the shares in the same proportion as other Eastern shares are voted (excluding Texas Air's shares constituting less than ten percent of Eastern's stock held outside the voting trust), except that Texas Air may direct the trustee to vote in favor of its own acquisition proposal and against any other acquisition proposal. Texas Air has not proposed a limit on the amount of Eastern stock it may purchase.

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