CAPA Americas Summit: Canada holds much promise, but the status quo persists (VIDEO)

A recent review of Canada's transport policy that recommends lifting foreign ownership caps in the country's airlines to 49% could benefit aspiring ULCCs and the dominant incumbent airlines alike. The country's airlines have limited access to capital, and a change in ownership regulations could allow those entities to enlarge and diversify their capital base.

The ULCC start-up NewLeaf Travel obviously supports a change in the foreign ownership rules of Canadian airlines, but in the meantime the company has opted to capitalise on existing capacity in Canada in order to become a first mover into the ultra-low cost space. NewLeaf believes that there is a large number of disenfranchised passengers in Canada who no longer travel by air due to higher prices and difficulty in travelling from secondary markets.

The policy review also offers recommendations to privatise some of Canada's airports, which is no doubt welcomed by the country's airlines. But the reality is that Canada's aviation landscape will remain status quo for the foreseeable future as the government and other stakeholders evaluate the suggestions offered in the report.