Federal government aims to lower airfares by bolstering competition
MONTREAL — The federal government plans to raise the cap on foreign ownership of Canadian airlines in a bid to drive down fares and offer travellers more choice.
Transport Minister Marc Garneau promised legislation that would allow foreigners to own up to 49 per cent of an airline in Canada, a jump from the current cap of 25 per cent. However, an individual foreign investor or group of foreign investors will still be capped at 25 per cent.
Garneau said loosening Canada’s foreign investment rules for airlines will spur competition and allow the launch of low-cost carriers.
“This can bring down airfares and it can also provide more destinations and more choice for consumers,” he told reporters Thursday after unveiling the government’s transportation plans for the coming decades.