EU–Canada open skies deal agreed

The EU and Canadian government have finalised an open skies agreement and are working towards raising caps on foreign ownership of airlines.

The deal will allow foreign investors to set up and control new airlines in each other's markets, and to allow European airlines to fly between two points in Canada and vice versa.

The agreement also almost doubles foreign ownership allowances in airlines voting shares from 25% to 49%.

"It allows airlines in both Canada and Europe to start enjoying many of the same commercial freedoms that any other business takes for granted," said Steve Lott, IATA spokesman. "Airlines are not looking for government bailouts. But we need to be able to manage our business based on brands, not flags. This is a step in the right direction."

Source: Routes News