OTTAWA — The federal government is relaxing foreign ownership rules for Canadian airlines in the hopes of spurring more competition and the prospect of lower airfares.

Transport Minister Marc Garneau on Thursday unveiled several big initiatives meant to make air travel cheaper and easier — by taking aim at airport security backlogs — and give passengers better protection when flights go awry.

Garneau laid out the government’s intent to allow foreign companies to own a greater share of a Canadian airline — 49 per cent, up from 25 per cent now — to encourage competition. However, a single foreign investor or combination of investors will be capped at 25 per cent.

“This will lead to more options for Canadians and allow the creation of new, low cost airlines in Canada,” he told a Montreal audience.

And while Ottawa works on new legislation to reflect the changes, Garneau said he would issue exemptions to allow new upstart airlines — Canada Jetlines and Enerjet — to pursue international investments right away.

A review of the Canadian Transportation Act completed earlier this year had recommended boosting foreign ownership limits to 49 per cent for commercial passenger carriers and 100 per cent for freight and specialty airlines, and ultimately move to remove foreign ownership restrictions entirely.

That review cited the “low level of competition and our relatively high airfares” as justification for the move.

WestJet and Air Canada reacted cautiously to Garneau’s announcement. But both airlines said if Ottawa truly wants to reduce airfares, it should start by tackling the patchwork of high fees and surcharges that are driving up ticket costs.

“Canada is a much more expensive jurisdiction in which to operate than other jurisdictions. We are disappointed the government has not signalled more clearly a willingness to meaningfully review aviation taxation and cost structure,” Gregg Saretsky, WestJet’s president and CEO, said in a statement.

Air Canada also took aim at what it called “uncompetitive” government and infrastructure rates, including airport rents, security surcharges and fuel taxes, calling it the “number one issue” facing Canada’s aviation industry.

“These need to be urgently addressed above other factors to create a truly competitive industry and reduce airfares meaningfully,” the airline said in a statement.

Garneau did note “frustration” at the cost of air travel and cited “the litany of fees and charges” but said little about what action Ottawa might take to reduce the sting of these extra costs.

However, he did pledge action on another sore point for travellers: long lineups at airport security.

As passenger traffic has grown, the Canadian Air Transport Security Authority — the agency that oversees airport security — has had trouble keeping pace, in part because the funding it gets from the federal government hasn’t kept pace either.

The transport minister acknowledged that Canada is falling short of the standards at international airports around the globe, such as London Heathrow, where passengers are whisked through security in 10 minutes or less.

“Too many Canadians are waiting too long . . . we need to do better,” Garneau said.

“We will work to set internationally competitive targets, allowing Canadian airports to keep up with hubs in other countries,” he said.

To do that, Garneau said he’d be looking at everything, from new equipment and technology to how CATSA is run and funded.

That action was applauded by the Greater Toronto Airports Authority, which operates Pearson International Airport. The authority had been pushing Ottawa to fix security tie-ups that left passengers fuming and were giving the airport a black eye.

“We encourage the government to take steps quickly to improve security screening wait times to keep Canada globally competitive,” said Howard Eng, the authority’s president and CEO.

Garneau also said Ottawa would be introducing the “air travellers’ passenger rights regime” to ensure the rights of flyers are protected by “fair and clear” rules.

The new rules will set out “clear” minimum requirements so that travellers will know when they are eligible for compensation, Garneau said.

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That will include compensation for when passengers are denied boarding or baggage is lost or damaged.

On the rail front, he said that Ottawa was looking at the introduction of high-frequency service between Quebec City and Windsor. And he said Transport Canada would take action to require the installation of audio-video recorders in locomotives to assist with accident investigations.

Looking ahead over the coming decades, Garneau predicted a move to zero emission vehicles, greater use of alternative fuels and renewable energy as the transportation sector becomes more energy efficiency and reduce its carbon footprint.

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