YOWkid

News release

No. H123/06
For release October 25, 2006

CANADA’S NEW GOVERNMENT TAKES STEPS TOWARDS NEW INTERNATIONAL AIR POLICY

OTTAWA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today released a consultation document in support of a new international air transportation policy. Transport Canada is seeking stakeholder views on the document, which calls for a modernized approach to international air transportation, including Canada’s bilateral air transportation negotiations.

Transport Canada also seeks to engage stakeholders on longer-term issues that are not part of the proposed policy. These issues are in a section entitled Looking Ahead, which outlines:

- a comprehensive Canada-European Union air agreement;

- a review of ownership and control regimes of foreign air carriers;

- movement towards the creation of a North American aviation market; and

- the adoption of a multi-lateral approach to some negotiations, which means one agreement with a group of countries.

“Canada’s New Government is committed to pursuing opportunities in international markets,” said Minister Cannon. “More open air agreements between Canada and other countries should encourage the development of new markets and services, resulting in greater choice for travellers and shippers.”

Canada’s current approach is to gradually reduce restrictions in air agreements. Under the proposed new policy, the focus would be to pursue the negotiation of Open Skies type agreements when it is in Canada’s overall interest.

Transport Canada will consider stakeholder comments during the consultation phase, which ends on November 8th, 2006. Following a review of stakeholders’ comments, a statement on the new international air transportation policy is expected to be released. Stakeholders will have until the end of December 2006 to provide comments separately on the longer-term issues outlined in the Looking Ahead section of the document.

The consultation document is available on the Transport Canada website at http://www.tc.gc.ca/pol/en/ace/acea/menu.htm

- 30 -

Contacts:

Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities, Ottawa
613-991-0700

Lucie Vignola
Communications
Transport Canada, Ottawa
613-993-0055

http://www.tc.gc.ca/mediaroom/releas...6/06-h123e.htm

tcook052

Transport Canada will consider stakeholder comments during the consultation phase, which ends on November 8th, 2006. Following a review of stakeholders’ comments, a statement on the new international air transportation policy is expected to be released. Stakeholders will have until the end of December 2006 to provide comments separately on the longer-term issues outlined in the Looking Ahead section of the document.

Given the normal speed of government, this seems awfully quick, even for Canada's 'new government'. BTW, when are the PR types going to give that term a rest?

AnselmAdorne

After the next election, when the Liberals are back in power.

Thanks for the link, YOWkid.

Cargoagent

If that happens then the phrase should be, "Canada's Old Corrupt Gov't" instead of "Canada's New Gov't."

Thanks for the link YOWkid.

Frayed_Yak

This is awesome. I am already dreaming of the day we can choose between AC, WJ, UA, AA and DL flying from YVR to YYZ!

like YVR-ORD-YYZ, or YVR-SLC-YYZ, etc. etc. ^

Thanks YOWkid

AnselmAdorne

The Liberals think we will have forgotten about that.

FlyerAl

Given the state of the Liberal leadership circus, I don't think there's even the slightest chance that the old, corrupt government will be returning after the next election.

seanthepilot

I Hear they're going to 'SCRAP THE GST!'

ROTLFMAO

Cargoagent

LMAO, now that's one of the funniest things I've heard today. Thanks for the chuckle.

why fly

Well lets hope the govt does something.... however i expect this just to be drum beating.

tcook052

http://www.newswire.ca/en/releases/a.../25/c4478.html

OTTAWA, Oct. 25 /CNW Telbec/ - The Canadian Airports Council today
applauded the federal government's new international air policy vision.
"In the Government's new policy blueprint, Minister Cannon clearly has
recognised that airports, the tourist sector, and the communities we serve all
have a very big stake in direction of Canada's international air policy," said
CAC President and CEO Jim Facette. "We look forward to implementation of a
policy that will facilitate a more competitive Canada, resulting in economic
benefits for the communities airports serve."
The CAC supports the government's "proactive" approach to pursuing more
liberalized agreements for international air service and welcomed the
government's plans to pursue Open Skies as a primary objective. The paper also
says that recognition must be given to community priorities, urges a separate
liberalized approach for cargo and calls on Canada to pursue a multilateral
approach to air regimes, where appropriate.
In its new policy document, Transport Canada adopted four of the
recommendations made by the CAC in its September position paper on
international air policy (Unbridling Canada, Why a New International Air
Policy is Imperative for a Competitive Canada, available on the CAC Web site):

<<
- A Policy of Open Skies - In its paper, Transport Canada pledges that

"As a primary objective, Canada will seek to negotiate reciprocal 'Open
Skies'-type agreements...where it is deemed to be in Canada's overall
interest."

- Community Priorities and Competitive Economic Interests -
Transport Canada has listened to the airport sector's request that
airports be consulted on air service priorities, saying in its paper:

"In determining its negotiating priorities, the Government will consult
airlines and airports and will take... into consideration...Canadian
airline and airport priorities and interests."

- Cargo - Air cargo has very different needs from passenger service and
the CAC recommended that Transport Canada consider cargo separately.
The government acknowledged this by stating that while some countries
may not be interested in an Open Skies relationship,

"In all cases...Canada will seek to secure as much flexibility for all-
cargo services as possible."

- A Multilateral Approach - The government recognized the growing
presence abroad of a multilateral approach to air service regimes, such
as with the European Union (EU) and declared:

"In addition to engaging the EU on a comprehensive agreement and
looking at a potential (North America Aviation Market), Canada will
access the merits of a multilateral approach with other regions and
countries."

>>

The CAC endorsed other important reforms in the policy document,
including allowing all Canadian airports the freedom to attract cargo
transhipment activity where there are market opportunities. Also welcomed is a
review of provisions to foreign carrier access that would be more effective in
allowing foreign carriers to launch service in the absence of bilateral
provisions to allow it.
"Canadian airports are busy actively marketing their communities to the
air carriers of the world, and what we have asked for is an international air
policy framework from Canada that allows these communities to compete fairly
and take advantage of the opportunities available," said Mr. Facette. "We look
forward to adoption of the government's new international air policy, and an
aggressive pursuit of Open Skies with Canada's trading and tourism partners."
The CAC will continue to study the international air policy document over
the coming weeks and will submit follow-up materials to its position paper
filed in September.


About the Canadian Airports Council

The Canadian Airports Council (CAC) is the voice for Canada's airports.
Its 45 members encompass more than 150 airports, including all of the National
Airports System (NAS) airports and most significant municipal airports in
every province and territory. Together, CAC members handle virtually all of
the nation's air cargo and international passenger traffic and 95% of domestic
passenger traffic. They create well in excess of $30 billion in economic
activity in the communities they serve. And more than 150,000 jobs are
directly associated with CAC member airports, generating a payroll of more
than $8 billion annually.

Nuitari

Let's bring on cabotage, loyalty doesn't matter anymore.

AnselmAdorne

Finally, a government prepared to say "Market forces should determine the price, quality, frequency, and range of air services options," although I was wondering whether they would give themselves some wiggle room if the playing field is tilted excessively in one direction. Sure enough, they say that they may not negotiate an open-skies agreement if "the foreign carrier(s) appear not to be behaving in accordance with rational business principle or is protected from normal market disciplines ..."

It's all good. Wait until AC's unions read it, though. My bet is they will issue a statement predicting lower wages or loss of employment for their members, as well as putting passengers' lives at risk. Someone keeps changing the music, but the unions only know one set of words.

Edited to add: Nuitari, they're pretty clear on cabotage--"Under no circumstances would the proposed approach include cabotage rights--the right for a foreign airline to carry domestic traffic between points in Canada."

Nuitari

Figures.

Then what does that mean:

spin spin spin ?

why fly

Some countries have created massive tourism by controlling their airlines... SQ is an example and maybe even CX....... the govt uses or controls the Airlines for the tourism business... not a bad idea.