Latest news with #foreignownership
CBC
3 hours ago
- Business
- CBC
Should Canada loosen rules around foreign ownership of its airlines?
The Competition Bureau is calling for changes to improve the competitive landscape in Canada's airline industry, including loosening rules that limit foreign ownership of Canadian airlines. But would it work? We speak with two aviation experts with differing opinions on the issue.
National Post
8 hours ago
- Business
- National Post
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. Article content In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. Article content Article content Article content The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. Article content Article content 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. Article content 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Article content Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. Article content Article content 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Article content Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Article content Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. Article content 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements.
CNA
17 hours ago
- Business
- CNA
EU lawmakers call for tighter controls on foreign ownership of key ports
There are growing calls from European lawmakers to tighten controls on foreign ownership of the bloc's critical transportation infrastructure. Chinese firms own stakes in more than 30 European ports and some EU officials see this is as a security concern. William Denselow reports.
CTV News
18 hours ago
- Business
- CTV News
Competition Bureau recommends more foreign investment, ownership of Canadian airlines
Canada should roll back restrictions on foreign ownership for domestic airlines, a new report from the Competition Bureau recommends. Released Thursday, the report on competition within the airline industry advocates for a 'Leverage (of) international capital and experience to strengthen domestic competition,' including through raised ownership caps for investors outside Canada. This is a developing story. More details to come.
Bloomberg
18 hours ago
- Business
- Bloomberg
Watchdog Urges Canada to Open Airline Sector to More Foreign Capital
Canada should loosen investment rules for airlines to allow full foreign ownership of carriers that fly only within the domestic market, according to the country's competition watchdog. The recommendation is one of several released Thursday by the Competition Bureau following a nearly yearlong study. It also suggests raising the ownership limit for Canadian airlines so that a single foreign investor can own as much as 49%, up from the current 25%, and prioritizing competition in merger reviews.
