Subsidiary Secondary Location

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1

I couldn't find a previous thread about this, apologies. 

Let's say you have an enterprise that was formed in the US, and you decide to create a subsidiary in a completely different country (e.g. Portugal)Would the Subsidiary still have traffic rights in the country it was founded in, despite its enterprise being located in a different country?

Regards.

2

Any subsidy you strart will have the same traffic rights as your holding companies location. The only exception is those countries that allow foreign investment

3

Ok, sorry for making this sound confusing.

So our main enterprise is in the USA, and it sets up a subsidiary in an unrestricted country (e.g.) Angola, now you could operate domestic routes in that country, but if you wanted yo fly to a different country (let's say Italy) but would this be allowed, keeping in mind your enterprise's legal country is the US?

Sorry once again if it does sound confusing.

4

Taking your example:

Your main airline is US-based.

Your main airline establishes a subsidiary in Angola (open to foreign investment with full traffic rights)

Your subsidiary will be allowed to operate domestic and international flights with full traffic rights. Your Angolan company would be allowed to operate passenger-flights between Angola and Italy for example.

5

Thanks for the reply!

Don't think that I'm going to create a subsidiary in Angola  :D  :ph34r: 

6

Of course, the Angolan subsidiary would be subject to the same traffic rights/restrictions of any domestic Angolan airline.

7

Thanks for your additional information!

8

Hi hi..

Now i'm the one who is wondering:

Lets continue the example.

Holding is US-based.

Subsidiary is Angolan.

Subsidiary have full traffic right of Angolan.

But does this subsidiary also have full traffic right of the US?

Or..

Does the holding also have full traffic right of the Angola?

In my understanding, the answer is no.

But maybe i was wrong.

*seems like i was wrong, though*

Hehe...

9

The subsidiary is, essentially, an Angolan airline and has only those rights to which an Angolan airline is entitled.