http://story.news.yahoo.com/news?tmpl=story&u=/cpress/20040125/ca_pr_on_bu/more_open_skies_2
Long story short, bush admin wants to allow canadian airlines to fly inbetween US destination, ie Pittsburgh to Philly.
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OTTAWA (CP) - The Bush administration is seeking cross-border free trade for North American airline companies - a concept that would mean serious domestic competition for Air Canada while giving Canadian carriers access to lucrative new routes in the United States.
U.S. Ambassador Paul Cellucci says Washington wants talks on liberalized aviation policies that would include allowing U.S. carriers to transport passengers between points in Canada and Canadian airlines to fly between American cities.
The 1995 Open Skies agreement between Canada and the United States curtailed time-consuming and costly forced connecting flights for passengers travelling between major cities in both countries. Business and tourism traffic have soared since the treaty was struck.
But the deal left several significant restrictions and protections on the airline industry in North America. Airlines in Canada and the United States are free to fly any cross-border route, but they are barred from flying cabotage or domestic flights in each other's country.
"I call it the almost-open skies," Cellucci said in an interview.
"We're interested in engaging on this. I made that clear to (former transport minister David) Collenette. Nothing happened."
That could change very soon.
Europe and the United States are already talking about de-regulation. John Byerly, the U.S. State Department's point man on aviation agreements, will be in Ottawa for a conference on air transport trends Tuesday.
Collenette's successor, Tony Valeri, has indicated he would like to negotiate the possible easing of restrictions on cargo flights into Canada, but wants to consult with Canadians before going any further.
"Minister Valeri has said this is something he would like to discuss," Cellucci noted. "He wants to see what people around Canada think.
"We think it's probably a good time to start discussing things like the cargo issue, as well as things like the cabotage and other issues involving open skies."
Valeri said he has already started meeting with various industry stakeholders, and those discussions would have to be complete before he begins any serious negotiations with the United States.
But the transport minister said in a weekend interview that he was prepared to look at any policies that constitute barriers to growth.
"Certainly opening up the markets is something I'm interested in, with the caveat that I'd have to spend a fair bit of time with the stakeholders. If we can position Canada as a North American gateway, it would be worthwhile having that discussion."
One of the major stakeholders - Air Canada CEO Robert Milton - is a keen backer of the talks.
"At every opportunity Mr. Milton has advocated further liberalization and greater integration of our aviation market," said Air Canada spokeswoman Laura Cooke.
"We are heartened there is support on both sides of the border towards further liberalization, as it represents a win-win solution that would serve to strengthen the close economic relationship between Canada and the U.S., boost both business and tourism, and ultimately benefit the consumer."
U.S. airlines have traditionally been reluctant to liberalize the current aviation agreement, since Air Canada is thought to have been the main beneficiary of the 1995 deal.
American carriers were beginning to warm to the idea just before the terrorist attacks of 2001. But the economic fallout of those airliner assaults brought several U.S. carriers to the brink of collapse, and the ardour for unrestricted air competition across the border disappeared as the U.S. Department of Transportation and the State Department dropped their pursuit of liberalized competition.
"I think it's an inefficiency," Cellucci said. "It's inconvenient and it's costing businesses money.
Long story short, bush admin wants to allow canadian airlines to fly inbetween US destination, ie Pittsburgh to Philly.
------------------------------------------
OTTAWA (CP) - The Bush administration is seeking cross-border free trade for North American airline companies - a concept that would mean serious domestic competition for Air Canada while giving Canadian carriers access to lucrative new routes in the United States.
U.S. Ambassador Paul Cellucci says Washington wants talks on liberalized aviation policies that would include allowing U.S. carriers to transport passengers between points in Canada and Canadian airlines to fly between American cities.
The 1995 Open Skies agreement between Canada and the United States curtailed time-consuming and costly forced connecting flights for passengers travelling between major cities in both countries. Business and tourism traffic have soared since the treaty was struck.
But the deal left several significant restrictions and protections on the airline industry in North America. Airlines in Canada and the United States are free to fly any cross-border route, but they are barred from flying cabotage or domestic flights in each other's country.
"I call it the almost-open skies," Cellucci said in an interview.
"We're interested in engaging on this. I made that clear to (former transport minister David) Collenette. Nothing happened."
That could change very soon.
Europe and the United States are already talking about de-regulation. John Byerly, the U.S. State Department's point man on aviation agreements, will be in Ottawa for a conference on air transport trends Tuesday.
Collenette's successor, Tony Valeri, has indicated he would like to negotiate the possible easing of restrictions on cargo flights into Canada, but wants to consult with Canadians before going any further.
"Minister Valeri has said this is something he would like to discuss," Cellucci noted. "He wants to see what people around Canada think.
"We think it's probably a good time to start discussing things like the cargo issue, as well as things like the cabotage and other issues involving open skies."
Valeri said he has already started meeting with various industry stakeholders, and those discussions would have to be complete before he begins any serious negotiations with the United States.
But the transport minister said in a weekend interview that he was prepared to look at any policies that constitute barriers to growth.
"Certainly opening up the markets is something I'm interested in, with the caveat that I'd have to spend a fair bit of time with the stakeholders. If we can position Canada as a North American gateway, it would be worthwhile having that discussion."
One of the major stakeholders - Air Canada CEO Robert Milton - is a keen backer of the talks.
"At every opportunity Mr. Milton has advocated further liberalization and greater integration of our aviation market," said Air Canada spokeswoman Laura Cooke.
"We are heartened there is support on both sides of the border towards further liberalization, as it represents a win-win solution that would serve to strengthen the close economic relationship between Canada and the U.S., boost both business and tourism, and ultimately benefit the consumer."
U.S. airlines have traditionally been reluctant to liberalize the current aviation agreement, since Air Canada is thought to have been the main beneficiary of the 1995 deal.
American carriers were beginning to warm to the idea just before the terrorist attacks of 2001. But the economic fallout of those airliner assaults brought several U.S. carriers to the brink of collapse, and the ardour for unrestricted air competition across the border disappeared as the U.S. Department of Transportation and the State Department dropped their pursuit of liberalized competition.
"I think it's an inefficiency," Cellucci said. "It's inconvenient and it's costing businesses money.
