A comprehensive open aviation agreement between Canada and the European Union has taken effect today now that the sides have formally signed off on the deal.
It removes all restrictions on routes, frequencies and prices for flights between the EU and Canada and will also lead to further liberalisation of traffic rights as ownership restrictions are lifted.
Initially any carrier will have complete freedom to operate between any point in the EU and any point in Canada. Freight carriers will have rights to operate onwards to third countries.
Once Canada loosens foreign ownership limits for airlines, raising permissible equity limits from 25% to 49%, a second phase will come into effect. This will extend further traffic rights, notably for cargo carriers.
When both sides enable investors to establish and control new operators in one another's markets, passenger airlines will be able to fly onward to third countries.
Once ownership restrictions are completely lifted, the fourth and final phase will free airlines to operate between and beyond EU and Canadian markets, and will also permit cabotage services.
Representatives from Canada and the EU expect an additional 3.5 million passengers will fly between Canada and the EU within the first few years of the implementation of the open aviation agreement.
"The new agreement makes the EU-Canada market one of the most open in the world and is a milestone for EU-Canada relations. It is an important sign that the EU and Canada are acting, not to close down their markets, but to remove barriers and improve links between people and businesses", European Commission vice president responsible for transport Antonio Tajani says in a statement.
Source: Air Transport Intelligence news
