As Canadian carriers prepare for flights to the US under the open skies agreement, US airlines are competing for temporary awards of rights to Toronto that could become permanent.
Since the US Department of Transportation gave out 17, ostensibly temporary, US-Canada route awards in February, there has been dissatisfaction over the choices made. Many fall under the three-year phase-in governing US access to Toronto, the most lucrative transborder market, with the first year awards determined by which carrier could establish services quickest. This shut out Continental and gave USAir access to Pittsburgh-Toronto.
Citing that award, and pointing out that USAir has long-established services to Toronto from its hubs in Boston, Philadelphia and Baltimore, Continental has applied for Washington/National-Toronto service in response to a USAir application for the same route. The rights will be given once Air Canada's scheduled service on the route starts in June.
The controversy points to US carrier concerns over the issue of the temporary status of the US-Toronto awards. Though the DOT says it will reassign the authorities at the end of the three-year phase-in period, it is assumed that services established as 'temporary' will have a better chance of becoming permanent.
Air Canada is to begin services to Washington/Dulles from Ottawa in May, and to Washington/National from Montreal and Toronto in mid-June. Canadian Airlines International, which won most slots at New York/La Guardia and Chicago/O'Hare is also bidding for slots at National.
Source: Airline Business
