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In Which Countries Foreign Investors Are Allowed To  
User currently offlineLPSHobby From Brazil, joined May 2007, 195 posts, RR: 0
Posted (5 years 3 months 2 days 1 hour ago) and read 2844 times:
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in wich countries foreign investors (a company or a person) are allowed to own more then 50% of an airline stakes?

14 replies: All unread, jump to last
 
User currently offlineEddieDude From Mexico, joined Nov 2003, 7614 posts, RR: 42
Reply 1, posted (5 years 3 months 1 day 22 hours ago) and read 2793 times:

In Mexico foreign investment in commercial airlines that offer passenger service is limited to 25% of the voting equity interests. However, the National Commission of Foreign Investment may authorize on a discretionary basis that foreign investors own additional non-voting equity interests, up to a maximum of 49% on a fully diluted basis (if I am not mistaken).

So no, no controlling of Mexican airlines by foreign entities.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineSeemyseems From United Kingdom, joined Jan 2009, 970 posts, RR: 7
Reply 2, posted (5 years 3 months 1 day 22 hours ago) and read 2775 times:

I think its allowed in most of Europe, Lufthansa has large stakes in several other European airlines, like LX, BD and EN, LH also has a small stake in JetBlue.


seemyseems
User currently offlineGemuser From Australia, joined exactly 11 years ago today! , 5760 posts, RR: 6
Reply 3, posted (5 years 3 months 1 day 16 hours ago) and read 2687 times:

Australia. A foreign investor can own 100% of a domestic airline, but only 50% of an international airline that uses Australian traffic rights. All subject to a specific approval process.

Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlineGisors From France, joined Apr 2008, 46 posts, RR: 0
Reply 4, posted (5 years 3 months 1 day 14 hours ago) and read 2633 times:

Regulatory approval is needed in Europe, only to check if there no risk of any monopoly position on routes and slots. Other that that there is no upper limit in the EU — also in non-EU European countries like Switzerland. LH owns 100 percent of LX, just like AF-KLM is sole shareholder of Belgian operator VLM.

AF-KL ownership is scattered among a number of shareholders, with possibly a majority of U.S. based private equity firms.

European industries are far less protected than Americans love to believe. Actually no major European carrier is shielded against any hostile takeover.

Fortunately, air transport is inherently only mildly attractive to investors...


User currently offlineAvek00 From United States of America, joined Oct 2004, 4410 posts, RR: 19
Reply 5, posted (5 years 3 months 1 day 14 hours ago) and read 2618 times:



Quoting Gisors (Reply 4):
Regulatory approval is needed in Europe, only to check if there no risk of any monopoly position on routes and slots. Other that that there is no upper limit in the EU — also in non-EU European countries like Switzerland. LH owns 100 percent of LX, just like AF-KLM is sole shareholder of Belgian operator VLM.

Yes, so long as the potential suitors are also Europeans. Americans seeking to take over an EU carrier would find their attempt as swiftly rejected as we will reject any attempt by Europeans (or anyone else) to take over a US airline.

I'm normally not very protectionist, but foreign ownership restrictions on air carriers -- at least, for the all-important-and-effectively-without-equal US aviation market -- are an exception, in order to further the compelling national interest of a robust national air transportation system.



Live life to the fullest.
User currently offlineAirbazar From United States of America, joined Sep 2003, 8573 posts, RR: 10
Reply 6, posted (5 years 3 months 1 day 14 hours ago) and read 2603 times:



Quoting Avek00 (Reply 5):
Yes, so long as the potential suitors are also Europeans. Americans seeking to take over an EU carrier would find their attempt as swiftly rejected as we will reject any attempt by Europeans (or anyone else) to take over a US airline.

Utter nonsense.


User currently offlineAvek00 From United States of America, joined Oct 2004, 4410 posts, RR: 19
Reply 7, posted (5 years 3 months 1 day 14 hours ago) and read 2596 times:



Quoting Airbazar (Reply 6):
Utter nonsense.

...but it's also the truth.



Live life to the fullest.
User currently offlineAirbazar From United States of America, joined Sep 2003, 8573 posts, RR: 10
Reply 8, posted (5 years 3 months 1 day 13 hours ago) and read 2566 times:



Quoting Avek00 (Reply 7):
..but it's also the truth.

How do you figure that? Europeans are far less protectionist than Americans are. SQ sure had no problem buying 49% of Virgin. Can you imagine the uproar of SQ lobying to change US laws in order to buy 49% of a US carrier? Have you forgotten the pathetic protectionist wining after Airbus won the contract to build the Air Force's tankers? Please.


User currently offlineLutfi From China, joined Sep 2000, 779 posts, RR: 0
Reply 9, posted (5 years 3 months 1 day 13 hours ago) and read 2558 times:

Hong Kong. As long as your "principle place of business" is in HK, you can own an airline there. So you just set up a holding company in HK. E.g. OASIS was set up with mostly American money (a US Chinese couple who made their money in Boston real estate) Cathay itself is ultimately majority owned by London & Beijing.

Australia, as mentioned above, for domestic airlines.


User currently offlineAvek00 From United States of America, joined Oct 2004, 4410 posts, RR: 19
Reply 10, posted (5 years 3 months 1 day 13 hours ago) and read 2540 times:



Quoting Airbazar (Reply 8):
Europeans are far less protectionist than Americans are.

Surely you jest. When it comes to persons and entities beyond the EU, the Europeans are every bit as protectionist as the Americans when it comes to aviation ownership. Your own example of SQ and VS illustrates my point -- 49% equity is the maximum both the Europeans and Americans will allow in foreign ownership.

Yes, the Europeans talk a better game of ownership liberalization than we do, but when Russians and Arabs start kicking tires at EU air carriers, the Europeans hem and haw just as loudly as any Yankee.



Live life to the fullest.
User currently offlineAusA380 From Australia, joined Jan 2009, 310 posts, RR: 0
Reply 11, posted (5 years 3 months 1 day 13 hours ago) and read 2534 times:



Quote:
Australia. A foreign investor can own 100% of a domestic airline, but only 50% of an international airline that uses Australian traffic rights. All subject to a specific approval process.

QF has a very significant foreign share holding and I understand is constantly having to monitor its compliance to limiting to 49.9% foreign ownership. I recall there is a limit or 25% (?) of any other foreign airline, but other foreign entities can hold shares up to the limit. Under former CEO Dixon he was regularly trying to have these limits removed as he felt they were limiting the capacity of QF to grown and have access to all equity options.

DJ has ownership from the Virgin Group around the 25% level, and with VAustralia they need to keep the foreign ownership below the 49.9% for international right. I understand Singapore interests (also involved in Rex) have some shareholding in DJ. If there is any move a greater foreign holding then they may have to do an "Ansett International" and spin off VAustralia to another entity with 50.1% local ownership.

Tiger is a 100% Singapore owned domestic operation.

I am not sure of the mix of the other domestic carriers - I believe Skywest is Singapore owned (not sure how the operate their international route to Bali).

National Jet which provide flyin/flyout operations, but also is a major provider to QF and their QantasLink operations nationally. It is 100% owned by Cobham Avaition Services from the UK.

Rex - major east and south coast regional operator also has significant Singapore Investment (not sure of %)

Also in NZ the Qantas Group and the Virgin Blue group operate wholly owned subsidiaries operating domestic services in New Zealand.


User currently offlineAirCanadaA330 From Canada, joined Aug 2008, 294 posts, RR: 0
Reply 12, posted (5 years 3 months 1 day 12 hours ago) and read 2505 times:



Quoting EddieDude (Reply 1):
So no, no controlling of Mexican airlines by foreign entities.

But isnt Aeromexico owned by Grupo Financiero Banamex which is in itself owned by Citigroup which is a foreign company?



Cheers;
User currently offlinePrebennorholm From Denmark, joined Mar 2000, 6515 posts, RR: 54
Reply 13, posted (5 years 3 months 1 day 12 hours ago) and read 2483 times:

Denmark for sure.

The largest all Danish airline for many years, Sterling Airlines, was for a long period 100% owned by Norwegian investors, later sold to Icelandic investors.

While owned by foreign investors Sterling Airlines bought 100% Danish owned Maersk Air and absorbed it.

Last year the Icelandic investors went bankrupt (not airline related) and 100% Danish owned Cimber Air picked up some of the remains including the brand name Sterling. They are now marketing their international scheduled and charter traffic under the brand name "Cimber Sterling", while planes keep the old either Cimber Air or Sterling Airlines scheme.



Always keep your number of landings equal to your number of take-offs, Preben Norholm
User currently offlineEddieDude From Mexico, joined Nov 2003, 7614 posts, RR: 42
Reply 14, posted (5 years 3 months 14 hours ago) and read 2302 times:



Quoting AirCanadaA330 (Reply 12):
But isnt Aeromexico owned by Grupo Financiero Banamex which is in itself owned by Citigroup which is a foreign company?

Nope. The controlling investors of Aeromexico are individuals of Mexican citizenship. Banamex, through a special purpose vehicle, owns a minority, non-controlling interest in AM. As a result, AM is not controlled by Banamex. You can see the name of the individual investors and an explanation of Banamex' participation in AM in the offering circular that was filed with the securities authorities and the Mexican Stock Exchange at the time the tender offer took place: ( http://www.bmv.com.mx/Digital/inscri...o-23112007-folleto-informativo.pdf ).

It has been more than a year since AM was taken private; therefore, it is quite likely that some changes in the ownership structure have taken place, and that information is not available to the public. In any event Banamex' participation is still limited to a non-controlling stake.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
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