Opportunities “Left on the Table” with Current International Air Policy, Canadian Airports Group Says

Wednesday, September 13, 2006 -

Opportunities “Left on the Table” with Current
International Air Policy, Canadian Airports Group Says

CALGARY (Sept. 13, 2006) Restrictive air service regimes with some of Canada’s top trading partners and sources of tourists mean Canadian communities are missing out on lucrative international air service links, says the Canadian Airports Council in a new position paper released today.

“Canada’s economic future is increasingly global, and air links are an essential part of the vital trade and tourism relationship Canada enjoys with the rest of the world,” said Canadian Airports Council President and CEO Jim Facette.  “Concrete opportunities for new international air service to Canada are being left on the table today while other countries are liberalizing their markets and air regimes at an accelerated pace.”

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 and tourist sources – countries like Japan, South Korea and France – are far too restrictive. 

Canada’s airports contend that the federal government’s current approach to international air service is still geared to a protectionist mindset, focusing on the priorities of Canada’s air carriers to the expense of the priorities of airports and communities that would benefit from increased air service by foreign carriers.

Meanwhile Canada has no agreement or very restrictive agreements with important international transit hubs like Qatar, Singapore, South Africa and the United Arab Emirates.  Service to markets such as these greatly expand Canadian access to other overseas regions and increase competitive choice for travellers.

“The federal government has said publicly it supports liberalization and Canada’s country’s air carriers have said publicly they support liberalization.  Now it is time for the government to turn its words into action,” said Mr. Facette.

Economic impact studies show that service by foreign carriers brings Canadian jobs. A 2005 economic impact study conducted for Vancouver International Airport, for example, found that each time one of its Asia-Pacific carriers lands at the airport with a local crew, it generates nearly 790 hours of employment.  Over a year, the carrier’s twice daily service is estimated to generate 369 person years of employment.  

Canada’s airports also are seeking a more flexible attitude by the federal government to interest by foreign carriers when the current regime needs to be amended.  Interested carriers can be delayed months or even indefinitely when the federal government seeks a bilateral agreement before allowing service.  The U.S., by contrast, allows for temporary service by a foreign carrier in advance of new agreements being concluded.

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.