Canada is reviewing its airline policy, which puts restrictions on foreign ownership of domestic carriers. Air Canada chief executive Robert Milton, who has been calling for a unified North American aviation market for two years, supports the policy review, writes Brian Dunn.

Canadian transport minister Jean Lapierre says a review should look at limits on foreign ownership of Canadian carriers, as well as whether foreign carriers should be allowed to compete on domestic routes.

Also under review will be federal rents at Canadian airports. Lapierre says conditions are ripe for a review, with the economy growing, Air Canada having exited bankruptcy protection and other carriers providing strong competition.

Instead of a 25-year-old protectionist policy for domestic carriers, Lapierre wants to create a "market-driven framework to help the industry compete regionally and globally".

Lapierre says unilateral action has not been ruled out, but notes US Secretary of Transportation Norman Mineta has indicated an interest in bilateral talks to extend the 1995 Open Skies accord.

Source: Flight International