Air Canada ready for competition but opposes quick exemptions for rivals
MONTREAL — Air Canada says it’s not afraid of competition from new Canadian low-cost airlines, but is opposed to Ottawa’s decision to fast-track new foreign ownership rules for two potential rivals.
“If there is a process to change the laws, to change restrictions, then we look forward to everybody to benefit within the same time frame,” CEO Calin Rovinescu said Monday after the airline smashed analyst forecasts with large gains in third-quarter profit and revenue.
Federal Transport Minister Marc Garneau announced last week that Ottawa plans to raise the foreign ownership cap for airlines to 49 per cent from 25 per cent in a bid to spur competition and lower fares.
Until the legislation is changed, the minister said he would grant exemptions that will allow aspiring discount airlines Canada Jetlines and Enerjet to land more international investors.