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Transport Canada clarifies proposed legislation on international air carrier ownership

Transport Canada clarifies proposed legislation on international air carrier ownership

The Government of Canada proposes to liberalize international ownership limits that would apply to all carriers, including those providing all-cargo services.

On November 3, 2016, the Honourable Marc Garneau, Minister of Transport, announced that the Government of Canada intends to introduce legislation that would raise the limit of international ownership of Canadian air carriers’ voting interests to 49 percent, up from a ceiling of 25 percent, with accompanying safeguards.

Today, Transport Canada wishes to clarify the scope of the proposed legislative change. The Government of Canada proposes to liberalize international ownership limits that would apply to all carriers, including those providing all-cargo services.


Under the Government’s proposal, the only persons exempt from these new limits would be operators providing specialty air services, who would remain subject to the current 25 percent limit.

The Canada Transportation Act defines a carrier to be “a person who is engaged in the transport of goods or passengers by any means of transport under the legislative authority of Parliament.”

Transport Canada regrets any inconvenience that may have been caused by a lack of clarity on this matter.

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