Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Higher Foreign Ownership Levels In Canada?  
User currently offlineMcdougald From , joined Dec 1969, posts, RR:
Posted (14 years 7 months 5 days 7 hours ago) and read 1521 times:

This morning's Globe and Mail is reporting that Transport Minister David Collenette is removing the 15% domestic single-investor ownership limit on Air Canada. The limit was established in the legislation which led to the airline's 1989 privatisation.

The Globe's editorial board is going one step further. In an editorial titled A more available airline, the newspaper is suggesting that Canada follow the Australian example and raise the limit on foreign ownership to 49%, from the current 25%.

And why not allow outright foreign ownership? Some might raise the issue of foreign carriers buying AC to strip away its assets, such as its New York and Heathrow landing slots, and transfer them to the parent company. But that can be solved by an anti-asset-stripping clause in the legislation.

Others might say that a foreign owner might not be interested in serving smaller markets, preferring to stick to trunk routes between Vancouver, Calgary, Toronto and Montréal. But Westjet, which is in the business to make a profit just like any foreign investor would be, seems to be doing well serving small markets like Grande Prairie and Comox. And did Air Canada, in its days as a Crown Corporation assumedly in business to serve the public interest, ever fly to long-overlooked markets like Hamilton or Red Deer?

Air Canada's CEO, Robert Milton, is a Boston-born American. His predecessors, Lamar Durrett and Hollis Harris, were also Americans residing in Canada (although Durrett has reportedly applied for Canadian citizenship). Canada 3000's Angus Kinnear is a transplanted Briton. And the late Canadian Airlines was itself subject to a degree of control by American Airlines' parent company, AMR Corporation, that circumvented foreign ownership legislation and only became public knowledge during the Milton v. Schwartz takeover battle in late '99.

So, why not end the Canada's-airlines-for-Canadians charade and open the door to foreign ownership?

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Foreign Ownership Here In The US posted Tue Aug 13 2002 21:00:42 by KL808
Canada May Raise Foreign-Ownership Limit posted Mon Sep 19 2005 22:12:38 by DFORCE1
Flying In Canada: Foreign Licence Validation posted Thu May 1 2003 10:50:58 by PIA747
How Are Foreign Airlines Handled In USA Airports? posted Fri Dec 1 2006 03:54:49 by BizJet
Lufthansa Foreign Ownership Over 45 % posted Sat Nov 25 2006 09:40:21 by Columba
AK/KL Foreign Ownership Reached 47% posted Wed Nov 15 2006 20:25:42 by Goldorak
IATA's CEO: Liberalize Foreign Ownership posted Tue Sep 19 2006 08:52:06 by Centrair
Airplaneski! On History Television In Canada posted Wed Jul 19 2006 02:43:50 by KrisYYZ
Looking For Info On Afrinat Airlines In Canada posted Tue Jul 11 2006 05:41:04 by CurtisMan
Can The AN-2 Be Used In Canada? posted Tue Jul 11 2006 03:14:22 by Tu204