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Region of Waterloo International Airport - YKF
(08-02-2016, 02:00 PM)MidTowner Wrote: It's actually a neat reason (well, I think it's neat, anyway).

From this Industry Canada page:

Quote:International air relations are governed largely by bilateral air agreements, which have the status of treaties and which, for the most part, incorporate national designation clauses that state only air carriers that are "substantially owned and controlled" by their government or home country nationals may be designated to operate air services under these agreements. There is no single internationally agreed upon definition for the concepts of "substantial ownership and effective control," and contracting states have discretion in choosing how to interpret it...

...Internationally, some states have eased restrictions to allow up to 49 percent foreign ownership of their carriers. China and India are such examples. In addition, some also permit 100-percent foreign ownership for carriers offering domestic services only, such as Australia and New Zealand (subject to a national interest test) and the European Union (internal market).

The issue of ownership goes back to the privatization and public sale of Air Canada in 1988. The real issues are where the airlines would fly if they were owned by say American Airlines or another international carrier.  As a subsidized carrier then known as Trans Canada Airlines, routes were established based on the needs of the country. There were great concerns that a foreign owned carrier would not  be interested in serving places like Edmonton, Winnipeg, Quebec City or any city in the Atlantic region. Lastly places like Regina or Saskatoon or Iqaluit would likely only have very limited passenger service if any.

The big issue from an economic point of view was what is referred to as passenger capitation. Every flight and every ticket price was approved by Transport Canada and thus there was a "national carrier".

If a free market situation including ownership were allowed there was great fear that the much larger U.S. airlines would fly from (example) NYC  to Toronto and on to Vancouver or Japan Or to Europe. This would have caused Air Canada and Pacific Western to be priced out of their own markets mostl likely disappearing entirely. No foreign carrier can  pick up passengers in Canada and fly them to another canadian airport.
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RE: Region of Waterloo International Airport - YKF - by MacBerry - 08-03-2016, 09:17 PM

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