The USA is scrutinising the question of non-Canadian ownership of Air Canada, and its decision could spark a conflict in the way the two countries define their foreign caps. Both apply a 25% limit, but Washington considers both ownership and control, while Canada only considers voting rights.
Foreigners own 70% of Air Canada's shares, but their voting rights are limited to 25% under a proportional voting scheme that Canada's transport agency has already ruled satisfies Canadian law.
While the USA ponders this issue, Jean Lapierre, Canada's transport minister, is calling for debate on the question of airline ownership controls. In a discussion paper presented to parliament's transport committee, he calls for a review of foreign caps on all Canadian carriers and the possibility of reciprocal cabotage with the USA.
Source: Airline Business