“Blue Sky” Policy will Benefit Canadian Travellers, Shippers and Communities, Airports Group Says

Monday, November 27, 2006 -

“Blue Sky” Policy will Benefit Canadian Travellers, Shippers and Communities, Airports Group Says

Airports urge government to pursue new agreements with Canada’s most important overseas markets for tourism, trade and transit of passengers and goods

OTTAWA (Nov. 27, 2006) – The Canadian Airports Council today heralded the federal government’s newly announced “Blue Sky” international air policy, saying it will benefit Canadian travellers, shippers and communities.The CAC called on the government to now aggressively pursue new Open Skies agreements with Canada’s most important markets for tourism, trade and the transit of passengers and goods.

“Today Canada joins a growing list of nations that have adopted liberalization, concluding that an approach that eliminates the restrictions on air service between Canada and foreign nations is the best for Canadian travellers and shippers and our trade- and tourism-dependent economy,” said CAC President and CEO Jim Facette.“With a legacy of restrictive agreements in place with some of our most important markets for tourism and trade, the government now must aggressively pursue Open Skies agreements to increase choice and competition in international air service.”

Canada already has liberalized air agreements with the U.S. and the UK. Since the first liberalization of Canada’s air service agreement with the U.S. in 1995, air traffic between Canada and the U.S. has nearly doubled.

Under the federal government’s new approach to international air service, Canada will seek to conclude greatly liberalized air service agreements with more nations of the world.The CAC urged the government to begin pursuing Open Skies agreements with the countries offering the most opportunity for Canada:

• Tourism – Tourism is a $57.5 billion industry in Canada but there currently are a legacy of restrictive agreements in place with many of the top 10 sources of overseas visitors to Canada – countries like Japan and South Korea.The government’s new policy will increase the options available for foreign travellers to visit Canada, as well as for Canadians to travel abroad.
  

• Trade – Canada is a big trading nation but current air regimes with some of Canada’s top traders stifle competition in air service.Improved air links will improve the ability of Canadian businesses to take advantages of international opportunities for trade.
  

• Transit – Some of the most restrictive agreements in place between Canada and other nations involve important markets for transit of passengers and goods to third nations. Open Skies agreements with markets like Singapore, the U.A.E. and Luxembourg will greatly improve competition for travellers and shippers between Canada and a host of other nations.

“With its new Blue Sky air policy, the federal government has indicated that it has heard the call of Canada’s airports to improve choice for Canadians in international air service,” said Mr. Facette.“This is what Canada’s airports have called for, and the government has delivered. But Canadian travellers, shippers and the communities our members serve will benefit most from increased choice and improved tourism and trade links.”

While welcoming the government’s Blue Sky policy, the CAC also called on the government to ensure that resources are in place to manage an increase in passengers.In particular, the CAC called on the government to commit more resources to border services provided by the Canada Border Services Agency.

Open Skies agreements eliminate rules that dictate such things as how many air carriers are allowed from each market, what destinations they may serve, and how many times they may fly.The government’s new policy does not affect domestic air service between two Canadian cities, which remains the domain of Canadian air carriers only.

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.

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