In a deregulating mood, Canada's conservative government wants to see market forces, not rules, play a bigger role in international aviation.
Under a new policy proposed by transport minister Lawrence Cannon, Canada would offer to forge open skies agreements with several countries. Given what he calls the "evolving nature of the global aviation industry" and recent open skies accords with the UK and USA, Canada wants to "formalise a more progressive approach to air liberalization".
He does not say what nations are open skies candidates, but local sources mention Australia, Iceland, Jordan, Panama and Singapore. The UK and USA are Canada's only open skies partners. The USA, in comparison, has open skies relationships with 78 countries.
Cargo rules would also be relaxed, eliminating the need for cargo carriers or specific airports to be designated for cargo service in a bilateral.
Cannon views open skies as a first step toward broader liberalisation. He sees a single North American aviation market becoming a platform for multilateral aviation pacts. He also wants to review ownership and control issues.
Public comments on the open skies and cargo proposals closed in November and a new policy is expected to be formally unveiled by year-end. On the longer term goals, which the transport ministry concedes are "ambitious", it will accept comments until year-end and announce a final policy next year.
The Air Transport Association of Canada (ATAC) refuses to support open skies unless the government lowers the taxes and fees that put Canadian carriers at a competitive disadvantage. "If the government is truly serious about growing air services and therefore the rest of the Canadian economy, it must first commit itself to lowering the costs of doing business, though lower taxes," says ATAC president Sam Barone.
The Canadian Airports Council is more enthusiastic, claiming that "open skies would only help Canada's airports and the communities they serve". Vancouver International Airport Authority chief executive Larry Berg says Vancouver will in particular benefit from the new policy because existing bilaterals restrict several foreign carriers such as Air France and Thai Airways from only serving Montreal and Toronto.
Berg says several carriers already serving Vancouver such as Singapore Airlines and Taiwan's China Airlines and EVA Air also may add frequencies under open skies. He expects Canada will sign several open skies deals in 2007.
Source: Airline Business
