Canada should allow 100 percent foreign ownership of domestic-only airlines, the Competition Bureau says in a new report highlighting the country’s “highly concentrated” aviation industry.
In a market study released Thursday, the watchdog suggested creating a new class of airline that operates only in Canada but could have owners from outside its borders, opening the gate to global expertise—and cash.
The current foreign ownership cap sits 49 percent. In addition, no more than 25 percent of a carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half.
“Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,” the report said….