Canada allows more foreign investment in airlines, wants competition

(Adds comments from low-cost startups, rewrites top)By Allison Lampert Nov 3 Canada will lift foreign
investment limits for Canadian airlines to 49 percent from 25
percent, a change that should spur competition and lower fares
by encouraging the launch of low-cost airlines, its transport
minister said on Thursday.Air Canada shares fell 3.2 percent while WestJet
Airlines Ltd slipped 1.4 percent following the news,
though analysts said a flood of new low-cost competitors is
unlikely given the country’s high aviation taxes and charges.Consumer advocates have long complained that limited
competition, high fares and airport fees make Canada a
comparatively expensive country for air travel.”I expect fares to go down because of competition, and I
expect more destination choices for Canadians,” Transport
Minister Marc Garneau said in Montreal.The rules still prohibit a foreign individual or single
group of international investors from owning more than 25
percent of a Canadian carrier.WestJet Chief Executive …