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New international ownership rules for airlines come into force in Canada

Staff Writer |
Marc Garneau, Minister of Transport, announced that, following the Royal Assent of the Transportation Modernization Act, new rules for airline ownership have officially come into force.

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These changes increase international ownership limits from 25 to 49 percent of voting interests for Canadian air carriers, while retaining a 25 percent limit for specialty air services.

Raising international ownership limits means that Canadian air carriers, including all-cargo services, have access to more investment capital.

The Government of Canada expects this to bring more competition into the Canadian air sector, more choice for Canadians, greater connectivity in underserved regions, and benefits for airports and suppliers, including the creation of new jobs.

A single international investor (individually or in affiliation) cannot hold more than 25 percent of the voting interests of a Canadian air carrier, and no combination of international air carriers can own more than 25 percent of a Canadian carrier (individually or in affiliation).

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