Canadian / European Aviation Pact

[Giveitago]

Canada reaches aviation pact with European Union
at 9:38 on December 9, 2008, EDT.
12/9/2008 12:00:00 AM
THE ASSOCIATED PRESS
BRUSSELS, Belgium - The European Union and Canada have reached a landmark deal to open up their air services markets to each other.

EU Transport Commissioner Antonio Tajani says the pact will lead to more transatlantic trade and spur competition in the air services sector. He says the deal, which removes restrictions on ownership and direct flights, makes "the EU-Canada market one of the most open in the world."

Expected to come into force in the first half of 2009, the deal will allow airlines based in the 27-member European Union bloc to operate direct flights to Canada from anywhere in Europe.

It removes restrictions on routes, prices and the number of flights allowed between the two sides.

It also foresees a phase-out of restrictions on investment and foreign ownership in airlines and could lead to European investors setting up airline operations in Canada.

[Panama Jack]

It also foresees a phase-out of restrictions on investment and foreign ownership in airlines and could lead to European investors setting up airline operations in Canada.

Well that will be interesting. Wondering if there is reciprocity in that deal?

[Rubberbiscuit]

As common as it may be for our Government to make bonehead decisions, I sure hope it is reciprocal.

[Widow]

More on this ...

UPDATE 1-EU, Canada to liberalise air traffic rules
Tue Dec 9, 2008 8:28am EST

BRUSSELS, Dec 9 (Reuters) - All European Union airlines will be able to fly directly to Canada from anywhere in the bloc under a coming aviation deal that also scraps investment curbs in the sector, the EU's executive arm said on Tuesday.

EU Transport Commissioner Antonio Tajani said the 27-nation bloc and Canada had made a breakthrough in talks on the agreement, which would remove restrictions on routes, prices and the number of weekly flights between Canada and the EU.

"The new agreement makes the EU-Canada market one of the most open in the world and is a milestone for EU-Canada relations," Tajani said in a statement.

Under the planned accord, EU nationals will be able to establish aviation operations in Canada and freely invest in Canadian airlines and vice versa.

The deal is also meant to ensure that EU and Canadian air carriers would not be discriminated against in access to local infrastructure or state subsidies.

It removes many hassles for air travellers. Transfer passengers, luggage and cargo are to be exempted from any additional security measures when travelling to and from Canada, the Commission said. (Reporting by Marcin Grajewski, editing by Dale Hudson)

http://www.reuters.com/article/marketsN ... 0520081209

[gonnabeapilot]

Interesting news about the limitations on foreign ownership being lifted... My bet is that with-in the next year or so, we'll see Lufthansa continue its recent buying spree and take an ownership stake in Air Canada. It'll be interesting to see how this shapes up.

[Antidote]

Here is the official press release from TC:

No. H 237/08
For release - December 9, 2008
CANADA CONCLUDES HISTORIC AIR TRANSPORT NEGOTIATIONS WITH EUROPEAN UNION

OTTAWA — Canada's Transport Minister John Baird, today announced that Canada has successfully concluded negotiations with the European Union (EU) on a comprehensive air transport agreement. The EU is Canada's second largest bilateral aviation, trade and investment market.

"The successful conclusion of air transport negotiations with the European Union is another step forward in our ongoing efforts to facilitate growth in trade, investment and tourism for Canadian business," said Minister Baird. "In these uncertain times, closer global partnerships will help stimulate our economy and expand commercial links. This is why our government celebrates this historic air transport agreement with the EU, which will open access to all 27 Member States for Canadian carriers and all points in Canada for EU carriers."

A comprehensive Canada-EU air transport agreement will benefit travellers and shippers by providing more choices in terms of destinations, flights and routes, more direct services, and the potential for lower fares.

"Without question, these times call for closer economic cooperation among key players in the global economy," said the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway. "This comprehensive air transport agreement helps to bring Canada and the EU to a new level of cooperation. It will help create new jobs for our economy, a competitive market for our businesses, and connections for our citizens."

This agreement, which is consistent with Canada's Blue Sky policy and current Canadian legislation, allows the development of new markets, new services and greater competition. This includes:

* unrestricted direct air services between Canada and EU Member States;
* flexible pricing arrangements; and
* improved flexibility for cargo.

The agreement also covers eight EU Member States (Cyprus, Estonia, Latvia, Lithuania, Luxembourg, Malta, Slovakia and Slovenia) with which Canada did not previously have air agreements.

This historic agreement is evidence that the Blue Sky policy is producing positive results for the Canadian air industry, travellers and shippers.

A backgrounder with further information about the Canada-EU Comprehensive Air Transport Agreement is attached.

- 30 -
Contacts:

Chris Day
Press Secretary
Office of Transport Minister John Baird, Ottawa
613-991-0700
Media Relations
Transport Canada, Ottawa
613-993-0055

Source: http://www.tc.gc.ca/mediaroom/releases/ ... -h237e.htm

[Antidote]

And the backgrounder:

BACKGROUNDER
CANADA-EUROPEAN UNION (EU) COMPREHENSIVE AIR TRANSPORT AGREEMENT

The Canada-EU Comprehensive Air Transport Agreement is unique in terms of the breadth of its elements and its architecture. It provides for:

* increased traffic rights, initially allowing for unrestricted direct services (on an airline's own aircraft or that of another carrier) between Canada and the EU, without any limitations on the number of flights operated or the prices to be offered. All-cargo airlines will also be permitted to operate to or from third countries on flights involving Canada or the EU.
* strong provisions related to safety, security and a competitive environment, reflecting the importance of these areas. In particular, both sides agreed to aim for deeper cooperation, such as eventual mutual recognition of safety standards and harmonization of approaches to aviation security.
* to the extent possible, additional flexibility for the commercial operating environment of airlines, such as stationing of airlines representatives, ground handling of aircraft and access to ground and marine modes of transportation associated with air services.
* the establishment of a joint committee that will facilitate cooperation, information-exchange, consultations and the overall implementation of the agreement.

The agreement also includes provisions regarding consumer interests, international cooperation, the environment, cooperation in the area of air traffic management, as well as the effective availability of airport and aviation facilities and services.

December 2008

[Antidote]

Anybody has an idea as to whether or not personnel licensing recognition might come to be harmonized as it has been with the US?

[pilotbzh]

If only the accord could be bring us the better pay and work condition that the european enjoy..... But I don't think it will help us.... at the end you'll work more for less money... and be away from home more often, summers in europe working winter in canada working...

[Conquest Driver]

Anybody has an idea as to whether or not personnel licensing recognition might come to be harmonized as it has been with the US?

Sure would be nice. I wish our Govt. had made it a condition of the deal

[greywings]

Negotiations on Personnel Licensing have been going on for some time. With the emergence of EASA (iso JAA) as the regulatory body, this is taking probably more time to resolve than originally hoped for. However, I think we will see it happen in the not-too-distant future.

GW