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Canada: Air Canada files challenge with federal regulator

By  |  September 3, 2019

Air Canada has filed a challenge with the country’s transport regulator over WestJet Airline’s acquisition by Onex.

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    Canada’s biggest airline argues the CA$3.5 billion (US$2.6 billion) takeover would breach federal rules that limit foreign ownership of carriers.

    Toronto-based Onex entered into an agreement in May to pay CA$31 (US$23.25) per share for WestJet, which would operate as a private company.

    Air Canada wrote in a letter to the Canadian Transportation Agency that co-investors in Onex, a private equity firm whose funds include cash from foreign investors, may come from outside the country. Federal legislation limits foreign ownership of a Canadian airline to 49%, with a maximum of 25% for any one foreign investor.

    Full Content: CBC

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