Ottawa calls for Comments on Expanding Role of Foreign Carriers in Canada
 

According to this morning's newspapers, Transport Canada has just issued a discussion paper raising issues, and calling for comments, about permitting an expanded role for foreign airlines in the country. This is the first step to possible policy changes. It does not necessarily open the door to cabotage, but does raise some interesting issues none the less. Here's the link to the press release, which contains a further link to the actual document:
http://www.tc.gc.ca/releases/nat/01_h011e.htm

The news story in the Report On Business also revealed why AC may have gone back to AMS so hastily. Apparently, as long as AC maintains service on an international route, Ottawa cannot reassign it to another Canadian carrier. It was likely that either Canada3000 or Air Transat was eyeing AMS, but AC was trying to block them by reintroducing service that CP had abandoned almost a decade ago. (I guess this is how C3000 got into Fiji and Australia, taking over the adandoned route CP had authority to fly.)

[This message has been edited by Shareholder (edited 02-08-2001).]

I presume this is also why Air Transat apparantly has the only direct service to Lisbon[?] I wonder who has rights to Athens?

AC operated it about 10 years ago. It was cut in Jeanniot's '91 retrenchment and has never been replaced.

It's about time the government opens up to the idea of foreign competitors. We already have it in "monopolistic" industries like financial services and telecommunications so I don't see why we can't have more airline competition. There isn't adequate competition right now, given that we only have one major full-service airline and a bunch of smaller "cheap" airlines. What we need is more full-service competition to truly keep AC on its toes. I'm willing to admit that if AA began flying domestic routes like YYZ-YUL, I'd be the first one to fly them.

While the Liberals were against the idea of cabotage when they suspended the competition laws in mid-1999, the Canadian Alliance was always open to increased airline competition. (It's on page 13 of their election platform) One of the reasons why I support the Canadian Alliance is because of their pro-competitive transportation policies.

It should be interesting to see what will become of this Transport Canada report. There are many angry MPs who are frustrated with the current levels of service. Stay tuned http://www.flyertalk.com/forum/biggrin.gif

Since when do angry MP's matter any more?

Tell me that there are angy Senior Managers at Transport Canada, or irate politicos in the PMO, and then you'll be talking about people who can make a difference.