Landmark agreement creates opportunity for air carriers and airports

The Canadian Airports Council (CAC) congratulated the government for the successful negotiation of a liberalized air service agreement with the European Union.' This landmark agreement, which contains achievable incremental targets for full Open Skies, will enhance Canadian competitiveness and provide greater choice for travelers and shippers.

"We are confident that the targets set for a full Open Skies agreement with the European Union are very achievable", said CAC Chairman Barry Rempel. He added, "In tough economic times, the competition for overseas tourists gets even tighter.' Liberalized air service agreements have proven to increase opportunities for trade and tourism, while promoting greater competition in the market and more choices for consumers."

The landmark deal, concluded after a series of negotiations in which two CAC observers participated, replaces a patchwork of bilateral agreements Canada had with 19 of the 27 EU member states. It allows any carrier from either market to operate direct service between anywhere in Canada and anywhere in the EU without restrictions on frequency, capacity, pricing or other artificial market barriers. It includes Open Skies for cargo.

More than half of Canada's overseas tourists hail from Europe. The EU also is Canada's second biggest trading partner after the US, with some $84.2 billion in imports/exports. According to a study from the European Commission an Open Aviation Area would generate consumer benefits of at least $110 million and could create 3,700 jobs in the first year.

"We look forward to a continued aggressive implementation of Canada's Blue Sky Policy, with the continued participation of the CAC and airport participation," said CAC President and CEO Jim Facette.' "As gateways to the communities they serve, airports are in the best position to ensure that these talks result in real opportunities for new air service and the trade and tourism benefits that result."