Monthly Archives: December 2009

Proposed Liberalization of Canada’s Foreign Ownership Rules

New regulations to liberalize Canada’s foreign ownership rules in connection with Canadian air carriers are expected to come into force in 2010.  The changes are contained in Bill C-10, the Budget Implementation Act, and will apply to all air carriers (i.e. public, private, fixed-wing, rotary-wing, etc.).

The legislative changes stemmed from recommendations of the Competition Policy Review Panel, which was established in 2007 by the Minister of Industry to examine and report on laws affecting competitiveness of Canadian businesses, especially those in the aviation sector.

The new regulations will give the federal cabinet the power to allow non-Canadians to own and control up to 49% of the voting interests of a Canadian air carrier.  Currently, non-Canadians are …

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Update on Bill C-310: Canadian Passenger Bill of Rights

On February 14, 2008, thousands of passengers were stranded for up to ten hours onboard several JetBlue Airways aircraft on the tarmac at Kennedy International Airport.  The passengers complained that they were deprived of food and water and that restrooms were not available as toilets had overflowed.  A month later, several hundred passengers travelling with several other airlines were stranded aboard planes at JFK after a day-long ice storm.  In response, New York State passed a law providing airline passengers with certain minimum rights, which if violated would attract fines payable by the airlines.  The New York State law was later “struck down” in a court decision finding that aviation was under federal and not state jurisdiction.

European Regulation (EC)

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