Canada should allow increased foreign ownership of airlines

Ottawa should raise current foreign-ownership limits on airlines to boost competition and encourage new entrants into the market, a study for the Canadian govt has recommended. The review, which sought to identify priorities for updating Canadian transport laws, recommended the govt increase foreign ownership limits to at least 49% from 25% for air carriers providing commercial passenger services. "Our goal is to see Canada join most other large aviation markets in allowing significant (but not full) foreign ownership of passenger air carriers," the report said. "These changes should contribute to narrowing the gap between Canada and other markets in terms of our relatively low level of competition and our relatively high air fares." <br/>