Air Canada submits letter to CTA expressing concerns over Onex acquisition of WestJet

    Air Canada reportedly submitted a letter to the Canadian Transportation Agency (CTA) regarding Onex Corporation‘s proposed acquisition of WestJet, calling the takeover a “significant risk”, as: “Onex lacks necessary internal controls to ensure that WestJet remains Canadian” (Reuters/DeltaOptimist/Financial Post, 03-Sep-2019). “The uncertainty and flexibility of co-investor participation introduces significant risk that non Canadian co-investors will have control in fact of WestJet following the transaction”, the airline stated. As previously reported by CAPA, Canada increased its international ownership limits from 25% to 49% of voting interests for Canadian airlines, while retaining a 25% limit for speciality air services. The CTA said there is a process to “determine whether the proposed transaction will result in an undertaking that is Canadian”, while Onex noted it is “engaged with the CTA on the regulatory approval process of our transaction”.