Low-cost airline asks Ottawa for higher foreign investment limit

Start-up airline Canada Jetlines has asked the federal govt for an exemption to the 25% limit on foreign investment in Canadian carriers, setting up an early signal of how Ottawa will respond to a report recommending that foreign investors be permitted to own up to 49% of a Canada-based airline. Canada Jetlines, which wants to be an ultra-low-cost carrier, said it has identified an investor or investors prepared to help get the airline off the ground, but the limit on foreign investing needs to be raised. The airline does not have permission to identify the group publicly, Canada Jetlines CE Mark Morabito said Monday. A report on Canada’s transportation sector presented to the govt earlier this year by former federal cabinet minister David Emerson said there is room for more competition in the airline business. <br/>