Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Canada should allow increased airline foreign ownership -study

Published 2016-02-25, 04:23 p/m
© Reuters. Canada should allow increased airline foreign ownership -study
WJA
-
AC
-

OTTAWA, Feb 25 (Reuters) - Ottawa should raise current
foreign-ownership limits on airlines to boost competition and
encourage new entrants into the market, a study for the Canadian
government recommended on Thursday.
The review, which sought to identify priorities for
modernizing Canadian transportation laws, recommended the
government increase foreign ownership limits to at least 49
percent from 25 percent for air carriers providing commercial
passenger services.
"Our goal is to see Canada join most other large aviation
markets in allowing significant (but not full) foreign ownership
of passenger air carriers," the report said.
"These changes should contribute to narrowing the gap
between Canada and other markets in terms of our relatively low
level of competition and our relatively high airfares."
For airlines operating all-freight and specialty air
services, foreign ownership limits should be increased to 100
percent, the study said.
The government should also level the playing field for new
entrants and growing carriers by ensuring that regulations for
granting licenses and air operator certificates are consistent,
the report said.
Shares of Air Canada AC.TO closed up 1.5 percent at
C$7.26, while those of WestJet WJA.TO ended down 0.7 percent
at C$16.19.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.