Kathryn, I had a whole chapter of my book devoted to the subject of
airline ownership and control rules. ('The Regulation of Air Transport'.
Routledge). They have certainly held the industry back, especially in
terms of international consolidation and profitability. Unfortunately,
they are extremely difficult to reform fully because they require
multilateral agreement. It's a complex issue.
Barry Humphreys
------ Original Message ------
From "Kathryn Creedy via Mifnet" <mifnet@lists.mifnet.com>
To mifnet@lists.mifnet.com
Cc "Kathryn Creedy" <kcre...@gmail.com>
Date 20/06/2025 14:02:10
Subject [Mifnet 🛰 72806] Foreign ownership
Canada's antitrust authority is recommending lifting airline ownership
rules, something that always made sense to me. But as I read this
article, I realized I don't know all the pros and cons so I'm asking.
"Canada’s antitrust watchdog recommends the government ease
restrictions on foreign investment in the country’s airline sector to
stimulate competition–such as allowing nonresidents to own 100% of a
domestic-focused carrier....Among the watchdog’s chief suggestions is
to allow up to 100% foreign ownership for domestic-only Canadian
airlines, noting that Australia allows for such an arrangement....The
bureau was also warned that allowing foreign carriers to acquire
Canadian airlines might lead to a redirection of traffic to foreign
hubs as opposed to new domestic markets....The bureau also said that
unions and labor organizations opposed any changes to foreign-ownership
limits. They argued this would threaten employment in the industry and
services to remote markets, like in northern Canada."
I do know restrictions have blocked/weakened airlines and I have seen
them as protectionist. I never bought the "citizenship" argument
because in the past, during emergencies gov just nationalized the
businesses they've seen as strategic. Soooo, can we start a
conversation about the ownership rules?
https://www.wsj.com/world/americas/canadas-antitrust-watchdog-calls-for-easing-of-foreign-ownership-limits-in-airline-sector-305a1767?st=FLUBZ3&reflink=desktopwebshare_permalink
Cheers -- Kathryn
--
Kathryn Creedy
PHONE # 321 405 4395
US-Eastern Time Zone
Twitter: @kcreedy
Visit me on LinkedIn
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