Air Canada files challenge with federal regulator over Onex's WestJet takeover

MONTREAL -- Air Canada is challenging WestJet Airlines Ltd.'s $3.5-billion acquisition by Onex Corp., arguing the deal breaches federal rules that limit foreign ownership of carriers, it wrote in a filing to the country's transportation regulator. In May, Toronto-based Onex entered into an agreement to pay $31 per share for WestJet, that would operate as a private company. Air Canada said in a letter to the Canadian Transportation Agency that co-investors in Kestrel Bidco Inc. -- the Onex subsid