Air Canada has challenged Onex Corp’s proposed acquisition of WestJet Airlines, on grounds that the deal may not meet the country’s ownership rules, according to a letter sent by the carrier to the Canadian Transportation Agency. Toronto-based Onex’s planned C$3.5b buyout of Calgary-based WestJet has received approval from the carrier’s shareholders and some regulators, but the agency is still reviewing whether the deal meets Canada’s protective ownership laws. Under Canadian rules, foreigners cannot own more than 49% equity in a Canadian airline. The rules further restrict a foreign airline and any single foreign owner from controlling more than a quarter of voting interests in a Canadian carrier. The likely presence of Onex co-investors such as foreign wealth funds and carriers, and the “opaque nature” of the deal to buy WestJet through company subsidiary Kestrel Bidco, will make it harder to ensure compliance with ownership laws, Air Canada argued in the letter to the Canadian Transportation Agency, dated Aug. 15. “The uncertainty and flexibility of co-investor participation introduces significant risk that non-Canadian co-investors will have control-in-fact of WestJet following the transaction,” Air Canada said.<br/>
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Scandinavia's SAS is to challenge budget carrier Norwegian on the transatlantic route to Los Angeles from Copenhagen next year, by transferring its current service from Stockholm. It says it will "relocate" its services on the Stockholm-Los Angeles route to the Danish capital from 13 January 2020. The carrier will increase the connection to a daily frequency starting in March, ahead of the summer season. "The timetable is attractive, and thanks to the economies of scale we can achieve in fully utilising our fleet, we are in a position to provide a daily service from Copenhagen,” says SAS executive VP commercial, Karl Sandlund. Passengers already booked on the Stockholm-Los Angeles service will be rebooked via the new flight. SAS currently uses Airbus A330-300s on the Los Angeles route. SAS says the US gateway is "one of the most in-demand intercontinental routes" from the Danish capital.<br/>