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Canadian Airlines Planning to Increase their Non Canadian Ownership

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I wonder who will buy in?

WestJet to implement recently increased foreign ownership levels

‎Today, ‎February ‎15, ‎2019, ‏‎12 minutes ago | Canadian Aviation News

Provided by WESTJET, an Alberta Partnership/CNW

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CALGARY, Feb. 15, 2019 /CNW/ – WestJet (TSX: WJA) today announced that it will seek shareholder approval at its 2019 annual and special meeting of shareholders to amend its articles of incorporation and By-Law No. 2005-1 to increase the limits on foreign ownership and control of its voting shares to those permitted by amendments made to the Canada Transportation Act (CTA) in 2018. The amendments to its articles and By-Law No. 2005-1 will be undertaken by way of a court supervised and shareholder approved statutory plan of arrangement. 

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Completion of the plan of arrangement is subject to shareholder approval and approval of the Court of Queen’s Bench of Alberta. Full details regarding the plan of arrangement will be included in the management proxy circular which will be made available to WestJet shareholders in connection with the shareholder meeting. 

 

Air Canada to Implement Recently Increased Foreign Ownership Levels Français

 

MONTRÉAL, Feb. 15, 2019 /CNW Telbec/ - Air Canada (TSX: AC) today announced that it will seek shareholder approval at its 2019 annual and special meeting of shareholders to amend its articles of incorporation to increase the limits of foreign ownership and control of its voting shares to those permitted by amendments made to the Canada Transportation ACT (CTA) in 2018.  The amendments to its articles will be undertaken by way of a court supervised and shareholder approved statutory plan of arrangement.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada's stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers.  At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Completion of the plan of arrangement is subject to shareholder approval and approval of the Quebec Superior Court.  Full details regarding the plan of arrangement will be included in the management proxy circular which will be made available to Air Canada shareholders in connection with the shareholder meeting

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39 minutes ago, dagger said:

Transat, too

It was inevitable once the Lobbyist achieved their goal of getting the feds to increase the level of foreign ownership.  This is what our industry always needed, the ability to bring in large additional funds and not be limited to from within Canada

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Fido

Fido

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On 2/16/2019 at 8:13 AM, blues deville said:

Are there potential foreign owners interested in our California sized population of 37 million who mostly live within 100km of the US border?

There are always suckers who will buy airline stocks

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Kasey

Kasey

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13 minutes ago, Fido said:

There are always suckers who will buy airline stocks

Especially the employees, over and over and over, Amen!

Got 3 basement bathrooms wallpapered in stock, can't use it as toilet paper, too much glue! ?

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28 minutes ago, Kasey said:

Especially the employees, over and over and over, Amen!

Got 3 basement bathrooms wallpapered in stock, can't use it as toilet paper, too much glue! ?

I have some PWA stock worth about the same but sure wish I had brought AC stock when it was low.  Those who did, have made a fair (great) return or so I am told.

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Seeker

Seeker

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On 2/16/2019 at 11:13 AM, blues deville said:

Are there potential foreign owners interested in our California sized population of 37 million who mostly live within 100km of the US border?

Just watch.  I'll bet there's lots of demand from foreign investors.

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dagger

dagger

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I'm sure there will be some additional foreign interest, but this is more about reducing the regulatory burdens that have come with a 25% limit, like dual stock. Each airline making these changes is merely conforming to the new, more liberal regulatory environment. Now, down the road, a meaningful transaction might come about - even a stock swap with a foreign airline. Maybe Delta might want a big chuck of WS, or AC might swap with LH or something like that.

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