Wednesday, December 10, 2008

Europe-Canada Aviation Deal Should Boost Air Cargo Services

(Transport Intelligence)

Air cargo services between Europe and Canada should benefit over the next few years from a breakthrough in EU-Canada negotiations over a large aviation agreement, announced yesterday (December 9).

The EC (European Commission) said negotiators from the EU and Canada had now initialled a comprehensive agreement on air services in line with the conclusions of an EU-Canada summit on October 17. Currently, pointed out the EC, EU states either had bilateral agreements with Canada, in some instances with considerable restrictions, or in eight cases no agreements at all.

“The agreement will be a major step in the opening of markets and investment opportunities,” said the commission. “It both completes the transatlantic market started with the EU-U.S. first stage aviation agreement and goes well beyond it.”

Under the new agreement, explained the EC, all EU airlines would be able to operate direct flights to Canada from anywhere in Europe. The agreement removed all restrictions on routes, prices, or the number of weekly flights between Canada and the EU. Other traffic rights would be liberalised gradually in parallel with the opening up of investment opportunities.

“The agreement will finally establish a full Open Aviation Area between the EU and Canada. EU nationals will be able to establish operations in Canada and freely invest in Canadian airlines and vice versa.”

Transport Canada’s press release can be found here.