Canada's business aviation sector enters the year at a
pivotal moment. Regulatory reform by Transport Canada, intensifying
sustainability obligations, continued fiscal uncertainty, and
accelerating technological change are reshaping the landscape of
the industry.
For stakeholders, particularly those operating
cross‑border routes, 2026 will require heightened attention
to tax planning, regulatory compliance, and contractual allocation
of responsibility. This bulletin highlights the principal
developments likely to affect the sector over the coming year and
outlines why they matter from a legal perspective.
1. Fiscal Policy Uncertainty and Aircraft Ownership
Structures
We already addressed in our last bulletin the possible
implications of the 2025 Canadian Federal Budget on the aviation
sector, notably for aircraft owners, operators, vendors, and
infrastructure stakeholders[1]. One of the biggest
impacts is the repeal of the Select Luxury Items Tax on
