OTTAWA, June 27, 2018 /CNW/ - Canadians, travellers and businesses all benefit when a competitive airline industry supports economic growth and job creation for the middle class. From travel for leisure, business, personal appointments and medical treatments, or getting goods to market, we rely on our airline industry to help support our communities.
The Honourable Marc Garneau, Minister of Transport, today announced that, following the Royal Assent of the Transportation Modernization Act, new rules for airline ownership have officially come into force. These changes increase international ownership limits from 25 to 49 per cent of voting interests for Canadian air carriers, while retaining a 25 per cent 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 per cent of the voting interests of a Canadian air carrier, and no combination of international air carriers can own more than 25 per cent of a Canadian carrier (individually or in affiliation).
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"Our government recognizes the key role Canada's airline industry plays in supporting daily life, jobs, and tourism, while encouraging the continued growth of local, regional and national economies. I am pleased to see the new international ownership rules come into effect, and look forward to delivering additional measures to create a more modern and competitive Canadian air industry."
The Honourable Marc Garneau
Minister of Transport
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SOURCE Transport Canada
Delphine Denis, Press Secretary, Office of the Minister of Transport, Ottawa, 613-991-0700, [email protected]; Media Relations, Transport Canada, Ottawa, 613-993-0055, [email protected]
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