Cargojet welcomes retention of 25% cap on foreign ownership
10 / 11 / 2016
Canada-based freighter operator Cargojet has welcomed Transport Canada‘s review of the foreign ownership rules for Canadian airlines which remain unchanged for the airfreight sector.
Ajay Virmani, president and chief executive of the airline, said: "Cargojet welcomes the decision by the Minister of Transport, Marc Garneau, to maintain current foreign ownership levels at 25% for air cargo operators.
"We recognise and appreciate the extensive and exhaustive study undertaken by the Federal Government in consultation with stakeholders. Cargojet is completely and fully supportive of the initiatives announced.
"This decision provides continued stability of air cargo services to all Canadians in each region across the nation."
The Canadian transport minister did however change the ownership rules for passenger airlines. International companies will be able to own 49% of a passenger airline in Canada – up from the current 25% – but a single foreign investor, or combination of foreign investors, will be capped at a maximum of 25%.
"This will lead to more options for Canadians, and allow the creation of new, ultra-low cost airlines in Canada," said Garneau.