Airports Industry Applauds New International Air Policy Vision for Canada

Wednesday, October 25, 2006 -

Airports Industry Applauds New International Air Policy Vision for Canada

OTTAWA (Oct. 25, 2006) – 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.