The Canada–U.S. Open Skies Agreement led to a sharp increase in the
capacity of scheduled airline services between the two countries — with
an increase of 25% in the first year alone. But the Open Skies agreement
did not give the foreign air carriers cabotage rights for passengers or air
cargo. It did not permit airlines from the US or Canada (or any investors)
to establish airlines in the other country or to own more than 25% of an
airline's voting shares.