Wanted: A Canadian International Air Policy that Will Allow Canada to be a Global Player in Air Cargo

Thursday, September 14, 2006 -

Wanted: A Canadian International Air Policy  that will Allow Canada to be a Global Player in Air Cargo

CALGARY (Sept. 14, 2006) Canada has very restrictive or non-existent air regimes with all but two of the world’s top air cargo countries, Canada’s airports say.  In a position paper released today, they say an aggressive approach to air cargo liberalization, such as unilateral Open Skies, is the “urgent care” needed if Canada is to play a leading role in the big business that is global air cargo.

“Canada is well placed to serve as a leading player in air cargo, as the first stop on the polar route from Europe or Asia to the Americas, with great truck and rail access to the U.S., and growing air links to Central and South America,” said CAC President and CEO Jim Facette at the 2006 World Air Cargo Forum in Calgary.  “But while other countries have liberalized, a restrictive international air policy here in Canada keeps air cargo carriers out and is stifling the ability of Canadian communities to participate in this profitable $40 billion (USD) industry.  Unilateral Open Skies is the best way for Canada to catch-up.”*

Since 1995, overseas air cargo tonnage has increased 55 per cent, yet no Canadian airport today is even in the top 50 airports for air cargo tonnage.**   Canada’s airports would like to change this.  In its position paper, the CAC contends that extra-bilateral rights from Open Skies would greatly benefit Canadian shippers and businesses and provide Canada with a competitive advantage in the cargo sector.

The federal government has made progress on liberalization with new agreements with the U.S., UK, China, India and Portugal in recent years.  However, Canada’s airports contend the country has some catching up to do.  In its position paper, the CAC outlines how Canada’s relationship with some of its top traders – countries like Japan, South Korea, France and Italy – are far too restrictive. 

Meanwhile, Canada is very restrictive or non-existent bilateral regimes in place with most of the big air cargo hubs of the world – limiting Canada’s potential to fully play in this global supply chain.

 “It is time for a change in government policy to allow Canada to experience the kind of phenomenal cargo growth that has been experienced in other markets that have liberalized,” said Mr. Facette.  “One need only look at some of the great cargo cities of the world to see what can be accomplished.”

Canadian carriers have been increasing their cargo capability in recent years, but foreign cargo carriers are expressing interest in Canada as well and face obstacles under the current bilateral air regime. 

“Improved air cargo links provide Canadians with more competitive choice and greater international opportunities for businesses,” said Mr. Facette.   “But a new approach by the federal government to international air service is needed if Canada is to realize its full potential in this growing sector.”

Foreign carriers bring Canadian jobs.  An economic impact study conducted for Vancouver International Airport, for example, showed that every time a cargo integrator lands at the airport from the U.S., more than 200 hours of employment are generated resulting in 40 person years of employment over a year of daily service. ***

About the Canadian Airports Council

The Canadian Airports Council (CAC) is the voice for Canada’s airports. Its  45 members encompass 180 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.