Europe and Canada agree to liberal open-skies deal

Liberalized Air Agreement with Europe a Boost for Canadian Competitiveness
Landmark agreement creates opportunity for air carriers and airports,
increased choice for consumers

OTTAWA, Dec. 9 /CNW Telbec/ - The Canadian Airports Council today
congratulates this 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 travellers 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 U.S., with some
$84.2 billion in imports/exports. According to a study from the European
Commission, the number of passengers between the EU and Canada under Open
Skies would increase from eight million to 14 million by 2011. In addition,
the EC estimated that an Open Aviation Area would generate consumer benefits
of at least $110 million through lower fares 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."