Ottawa - August 4, 2005 - The Canadian Transportation Agency issued a decision today in which it concludes that the proposed restructuring of the share capital of WestJet Airlines Ltd, which wholly owns WestJet, will continue to meet the Canadian ownership and control requirements as defined in the Canada Transportation Act.
WestJet Airlines Ltd's share capital restructuring would be similar to the recent restructuring at the parent companies of two other Canadian air carriers, Air Canada and Air Transat, which the Agency approved on September 3, 2004, and January 20, 2005, respectively.
After a careful and comprehensive examination of all evidence filed with it, the Agency is satisfied that WestJet Airlines Ltd and WestJet will continue to be Canadian as defined in subsection 55(1) of the Act if the amendments it proposes to its articles of incorporation and by-laws regarding the restructuring are adopted. The Agency will monitor the affairs of WestJet Airlines Ltd and WestJet to ensure ongoing compliance with the Government of Canada's Canadian ownership and control requirements.
Pursuant to its share restructuring proposal, WestJet Airlines Ltd will, among other matters, put in place a mechanism that provides an automatic adjustment of the voting right attached to each voting share held by non-Canadians. The Agency also ordered the company to provide the Agency with its proposed form of declaration of Canadian status, as well as information about the process to be administered at meetings of shareholders, so the Agency can be satisfied that non-Canadians may never exercise control over more than 25 per cent of all votes cast at such meetings.
The Canadian Transportation Agency is an independent quasi-judicial tribunal that regulates various modes of transportation under Government of Canada jurisdiction, including air, marine and rail. Its procedures are governed by the rules of natural justice to ensure that all parties receive fair and equitable treatment.
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For further information, please contact:
Jadrino Huot
Senior Communications Adviser
(819) 953-9957
The Canadian Transportation Agency is online at www.cta.gc.ca
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