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Transport Minister Lapierre to move fast to allow U.S. airlines to fly within Canada

Transport Minister Lapierre to move fast to allow U.S. airlines to fly within Canada

Old Feb 13, 05, 12:37 pm
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Originally Posted by boymimbo
I hope AC opens up more frequency and more routes, especially overseas to China, Japan, and Latin America. I hope that it finds some more cities in the US to fly to, especially outsite of YYZ. YVR/YYC/YEG is far underserved to US destinations (but RJs can't serve these destinations as US centres such as SFO, DEN) are too far away.
I think improved frequency and diversity is exactly what you can expect from an open skies border. The RJ's can definitely handle routes like YYC-DEN or YEG SFO, but I think the right play is to utilize larger acft on a trunk route like YEG-DEN-LAX and use the RJ's to cherry pick underserved US cities to feed into mini-hubs like DEN.

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Old Feb 24, 05, 2:07 pm
  #47  
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An update of a sort on the subject:

http://www.canada.com/travel/story.h...0-607324b0e74c

OTTAWA (CP) - Canadians could be boarding American air carriers for flights between Canadian cities within a couple of years.
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Old Feb 24, 05, 4:02 pm
  #48  
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MONTREAL, Feb. 24 /CNW Telbec/ - Air Canada today urged the Canadian and
U.S. governments to accelerate plans to modernize the 1995 Canada-U.S. Open Skies Agreement by progressively removing restrictions in order to create a fully integrated common air transport market in North America.
"We are encouraged by Minister LaPierre and Secretary Mineta's commitment to renewed discussion to modernize the 1995 agreement," said Robert Milton, Chairman, President and Chief Executive Officer, ACE Aviation Holdings Inc. "It is time for Canada and the U.S. to take the necessary steps to build on the successes of the 1995 Open Skies Agreement by moving to an unrestricted, single aviation market that will generate more choices for consumers and create a healthier North American airline industry. The 1995 agreement was a great start, but it is quickly becoming outdated and if left unattended, risks being entirely out of step with current market realities and airline policy in competing jurisdictions.
"In recent years, we have seen unprecedented upheaval in the airline sector. International alliances have grown in importance, security and transit issues remain top of mind, the U.S. and the EU have entered into full-fledged Open Skies negotiations and legacy carriers throughout the world are going through difficult and lengthy restructurings. North American carriers are
taking aggressive steps to become more efficient and to reduce costs but need policies that will support the long-term health of the sector.
"This past 10 years has shown us that the liberalization of air policy between our two countries has been a resounding success for consumers and for carriers, unleashing impressive growth opportunities in the Canada-US air travel market on both sides of the border. In fact, prior to the 1995 Agreement, Air Canada served only nine mainline and five regional carrier
scheduled destinations in the U.S. Today Air Canada, Air Canada Jazz and its
commercial partners operate more than 385 non-stop flights per day on
79 routes to and from 49 U.S. and 6 Canadian points.
"We must not lose the momentum we have worked so hard to achieve through the 1995 agreement. We look forward to getting back to the table with our largest trading and aviation partner to develop the Open Skies Agreement our two countries deserve."
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Old Feb 24, 05, 5:35 pm
  #49  
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Let's see if WS releases something that cries foul.
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Old Feb 24, 05, 5:55 pm
  #50  
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Originally Posted by YOWkid
Let's see if WS releases something that cries foul.
More predictions? Since being right on the budget, u in the speculating mood?
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Old Feb 24, 05, 5:58 pm
  #51  
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Nah, I'll quit while I'm ahead.
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Old Feb 25, 05, 7:45 pm
  #52  
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What was really talked about

The national press tend to write only about what the think they heard, what the want to hear and what the understand. It makes for a very poor article with emphasis on things that will not occur.

The following was written by an aviation press reporter in an e-mail news-letter that I subscribe to. The real issue is to allow Fed-Ex and UPS to operate same airplane flights USA-CDA-CDA. Right now they have to land and give the onward traffic to a Canadian aircraft.

Also, Cabotage ain't gonna happen soon as it is against US law.

But, Americana Airlines operating within Canada and owned 100% by American Airlines is a possibility. The company would have aircraft and employees from the host country.


================================================== =======

Cabotage Not a Focus (At Least for Now)

Ever since Canadian Transport Minister Jean Lapierre recently re-introduced the subject of U.S./Canada Open Skies, the idea the mainstream Canadian media mostly has been talking about is having Canadian and U.S. airlines operate domestic routes within each other's country. As expected in the industry, the idea of cabotage as an easily achievable goal for any trans-border agreement was downplayed by most at an open skies forum held in Ottawa yesterday -- with the top aviation chiefs from both countries in attendance.

"We are now prepared, in the next few weeks, to take-up cross border talks," said Canadian Transport Minister Jean Lapierre at the Canadian Airports Council's Open Skies Forum in Ottawa.

The forum was held on the 10th anniversary of the landmark 1995 Canada/U.S. Open Skies Agreement, which extended unlimited 3rd and 4th freedom traffic rights to Canadian and U.S. carriers. That agreement nearly doubled the number of flights between the two countries, increased annual passenger numbers by 49 percent and saw a 20 percent decrease in ticket prices. Now officials are discussing scenarios that envision making the relationship more closely resemble the Open Skies agreements the U.S. already has in place with 67 countries around the world.

Lapierre and U.S. Transportation Secretary Norman Mineta, also in attendance, outlined their positions on further liberalization of the trans-border market. In particular, the chiefs zeroed in on the kinds of reforms that would bring the Canada-U.S. relationship in line with other open skies relationships already concluded by the U.S.

"The United States and Canada, the closest of neighbors and strongest of trading partners, still do not enjoy the full open skies relationship that the United States has with 67 other countries around the world, said Secretary Mineta in Ottawa. "Countries from every region of the world, and at every level of development, are increasingly adopting open skies agreements...But we donít have open skies, quite, when it comes to air service between the United States and Canada. The current agreement leaves in place barriers that deny airlines fifth freedom rights and limit multi-city cargo deliveries."

In particular, consensus seemed to be emerging on the following as key issues to be resolved:

Cargo liberalization -- One of the biggest issues is continued liberalization of transborder cargo -- in particular, the co-terminalization rights that are being sought by U.S. courier giants Federal Express and UPS. These carriers want to be able to carry cargo from a point in the U.S. to a point in Canada, and then beyond to a third point in Canada. Currently they have to rely on local Canadian cargo operators who are nervous about reforms.
Fifth freedom rights -- The ability for carriers to carry passenger traffic from their home country to the U.S./Canada, and then to a third country.
Also raised by Canadian representatives are so-called "modified sixth freedom rights" or "home country cabotage," which would allow a U.S. or Canadian carrier to carry the other country's domestic traffic via one of their hubs. But the achievability of this and other forms of cabotage was downplayed by the U.S. Department of State's Deputy Assistant for Transportation Affairs John Byerly, who said such a change would require a difficult to achieve change in existing U.S. federal legislation.

Also discussed at the forum was the possibility of an "Open Skies Plus," which would liberalize cargo and extend fifth freedom rights but perhaps also create a "right of establishment." Under this idea, a Canadian or U.S. carrier would be allowed to create a subsidiary in the other's country. The subsidiary would be marketed under the home carrier's brand but operate with local employees under local laws and regulations, in much the same way as foreign subsidiaries of companies in other industries are operated.

The speeches from Lapierre and Mineta seem to indicate that political momentum is building on both sides to conclude a new deal, perhaps as early as later this year.

"The United States and Canada ought not to be playing catch-up when it comes to air services -- we ought to be setting the pace," said Mineta in his speech. "Thatís my vision. And I believe that the stars are aligning to make it a reality."
 
Old Feb 28, 05, 4:15 pm
  #53  
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http://www.bloomberg.com/apps/news?p...Y&refer=canada

Feb. 28 (Bloomberg) -- Canadian Transport Minister Jean Lapierre said his government wants to lift restrictions on air transport between Canada and countries in the European Union.
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Old Feb 28, 05, 4:50 pm
  #54  
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Wow, I'm liking what I'm seeing.
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Old Mar 1, 05, 1:14 pm
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Just realised...

When Lapierre says "the EU", what does he mean exactly? Air bilats is a member state issue and the EU has no competency in this area, except that there is a Regulation stating that agreements must not infringe EU laws..

So, I suspect Lapierre is referring to the UK, FR, and DE... Are there any others on his list? Surely having 25 (26 if you include the US) simulataneous bilats is going to suck in terms of manpower...
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Old Mar 1, 05, 4:53 pm
  #56  
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Back to the U.S. angle:

http://www.allamericanpatriots.com/m...5e09c9658.html

Canada's Transport Minister Jean-C. Lapierre met with U.S. Transportation Secretary Norman Mineta while the two men were attending the Canadian Airports Council Open Skies Forum in Ottawa on February 25, according to a press release issued that day by the U.S. Department of Transportation.

After their meeting, Lapierre and Mineta issued a joint statement explaining that their "key area of discussion focused on commercial air liberalization," building on the success of the 1995 Canada-U.S. Open Skies Agreement. They announced that Canadian and U.S. officials "will begin exploratory discussions in the near future to consider a framework to complete the liberalization process between our two countries."
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Old Mar 1, 05, 5:49 pm
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Diplomatic and vague...
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Old May 3, 05, 4:49 pm
  #58  
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TORONTO, May 3 /CNW/ - The International Association of Machinists and Aerospace Workers urge parliament to fix the inherent problems in Canada's airline industry before implementing any 'Open Skies' agreement with the United States.

That message was delivered to members of the parliamentary Standing Committee on Transport, holding hearings on Air Liberalization and the Canadian Airports System. "We believe that our industry is in no shape to benefit from further liberalization at this time," said Paul Lefebvre, president of IAMAW Local Lodge 2323. "Deregulation in our vast and sparsely populated country has had a negative impact on our industry leaving an unstable National carrier and two low cost models all fighting for market share."


According to a 'Canada-US Open Skies' study prepared for the IAMAW's Air Canada Locals by Louis Gialloreto of Stowe & Breton Consultants, Canada is slowly emerging from its second deregulated recession and it must 'get its house in order before inviting our neighbours in.' The study says Canada can begin correcting the situation by addressing big cost items including skyrocketing airport rents, Airport Authority unaccountability for collecting some of the highest user fees in the world, escalating air navigation fees and security surcharges that are much higher than in the U.S.

"We need to reduce the rents that are paid to the government for facility use and the savings must then be mandated to be passed on to the users," said Lefebvre. Once the rents are under control, he added then we must turn our attention to the Airport Authorities. "It is our belief that our government must reign-in the Airport Authorities and force a cost discipline upon them," said Lefebvre. "Someone needs to introduce accountability in the selection, term and mandate of these organizations.

"Our study has indicated that we need a level playing field if we are to consider further liberalization of our air transportation system with the US," he said. "Unless we make these changes, we won't have it." The IAMAW is the largest air transportation sector union in Canada.

http://press.arrivenet.com/bus/article.php/631323.html
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Old May 12, 05, 12:29 pm
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Pierre Jeanniot argues in favour of open skies for Canada

MONTREAL, May 12 /CNW Telbec/ - Former Air Canada President & CEO and
Director General Emeritus of the International Air Transport Association
(IATA), Pierre Jeanniot would like to see Canada moving towards the active
opening up of its air transport market and pushing ahead with the
liberalization process that began in the early 1980s.
In an Economic Note published today by the Montreal Economic Institute
(MEI), Mr. Jeanniot draws attention to the successful integration of the
airline market within the European Union and urges the Canadian government,
provided that reciprocal rights can be obtained, to remove its restrictions on
"cabotage" - flights between Canadian cities on foreign airlines - and on
foreign ownership of Canadian-based airlines.
Illustrative of some of the advantages enjoyed by European consumers
since the liberalization of the European market are the sharp increases in the
number of routes, in flight frequencies, and in available seats. Increased
competition has also exerted downward pressure on fares, particularly in
economy class where fares fell by 29% between 1992 and 2000.

The next stage: two scenarios

The document presents two alternative paths presently open to Canada,
which would build on the success of the Open Skies Agreement signed by Canada
and the United States in 1995.
"The next stage (could) be to seek total integration of aviation markets
in North America as part of the North American Free Trade Agreement (NAFTA)
or, alternatively, the opening of negotiations with the European Union to
develop an agreement similar to what Europe has attempted - so far
unsuccessfully - to obtain with the United States."
But whatever the scenario adopted, concludes Mr. Jeanniot, Canada "should
take every opportunity that comes up to negotiate an Open Skies type agreement
with any country that already has a comparable agreement with the USA. It
should also, at the appropriate time, offer similar reciprocal agreements to
other liberalized parts of the world."
Under the title: Towards open skies for airlines in Canada, this MEI
document has been communicated to the Federal Minister of Transport and all
Members of Parliament. It is available at www.iedm.org .

Pierre Jeanniot was President and CEO of Air Canada from 1984 to 1990 and
President and CEO of the International Air Transport Association from 1993 to
2002. He is available for media interviews.

http://www.newswire.ca/en/releases/a.../12/c8108.html
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Old Sep 22, 05, 9:55 am
  #60  
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Thought I'd bump this thread with a note to what U.S. & Mexico are doing. The article is posted in NS forum.

http://www.flyertalk.com/forum/showthread.php?t=475204

The agreement, the first expansion of cross-border air service since 1999, allows three airlines from each country to fly between any U.S. city and 14 cities in Mexico, including Cancun, Acapulco and Guadalajara, the U.S. Department of Transportation said.

Before, only two airlines from each country could operate between U.S. and Mexican cities.

Last edited by tcook052; Sep 22, 05 at 9:57 am
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