INTERNATIONAL "OWNERSHIP AND CONTROL" LAWS FACT SHEET

Australia (Air Navigation Act, Section 11A)

• Foreign persons are allowed to own up to 100% of an Australian domestic airline
• Foreign persons can have interests in shares in an Australian international airline of no more than 49% of the total value of the issued share capital

Canada (CAR 700.04, Canada Transportation Act Section 55)

• Must be a “Canadian” to hold an air operator certificate as a domestic carrier

European Union (EC 1008/2008 Article 4, EEC 2407/92)

• Air carriers must be owned and effectively controlled by Member States and/or nationals of Member States
• Member States and/or nationals of Member States must own more than 50% of the undertaking, whether directly or indirectly through one or more immediate undertakings
• Undertakings which directly or indirectly participate in a controlling shareholding in an air carrier must also be effectively controlled and owned (directly or through a majority ownership) by Member States and/or nationals of Member States

Japan (Civil Aeronautics Act Article 101)

• No more than 1/3 of the officers may be foreigners or no more than 1/3 of the voting rights may be held by foreigners

Korea (Aviation Act, Chapter VI)

• Foreigners may own no more than 50% of the shares or stake of an airline
• Less than half of a corporation's officers or representatives may be foreign

India (Aircraft Act, 1937, Civil Aviation Requirements Section 3, Part II, Para 3.1 and 4.1.5-4.1.12)

• Operator's permits are granted only to Indian citizens or companies/corporations that are:

1. (i) registered and have their principal place of business in India,
2. (ii) the chairman and 2/3 of the directors are Indian citizens, and
3. (iii) substantial ownership and effective control is vested in Indian nationals

• India restricts foreign ownership to 49% for privately-owned air carriers
• Foreign airlines cannot have any direct or indirect ownership in Indian airlines

New Zealand (Civil Aviation Act)

• Foreign persons may own up to 100% of a New Zealand domestic airline
• New Zealand international airlines (NZ carriers serving international routes) must be owned and effectively controlled by New Zealand nationals
• Foreigners can own up to 49% of the paid up capital of the airline
• Australia and New Zealand have established a Single Aviation Market, with fewer restrictions on ownership by Australian and New Zealand citizens

Singapore (Air Navigation Act, Chapter 6 Section 16)

• There are no limits on foreign ownership and control of airlines imposed by the Singapore government, though some airlines maintain a policy of restricting foreign ownership to less than 50% to comply with requirements in ASAs

United Kingdom (Civil Aviation Act, Sections 64-70)

• For operation on routes within the European Economic Area (EEA), must have an Operating License and be majority owned and effectively controlled by an EEA Member State or national of EEA Member States, consistent with EU regulations
• For operations outside the EEA, must have a Route License or Air Transport License; holders of Route Licenses and Air Transport Licenses must be controlled by UK citizens

United States (49 USC 40102(a))

• Air carriers must be owned and controlled by US citizens
• Foreigners can own up to 49% of the total equity
• Foreigners cannot own more than 25% of the voting stock
• Must account for 100% ownership of the applicant to establish that the carrier is under the actual control of US citizens
• Directors named by foreign owners are generally considered to be “foreign” or “non-US citizens”, depending on the relative numbers and responsibilities of individual directors and managers