Air Canada Urges Governments to Modernize 1995 Canada-U.S. Open Skies Agreement

Air Canada today urged the Canadian and U.S. governments to accelerate plans to modernize the 1995 Canada-U.S. Open Skies Agreement by progressively removing restrictions in order to create a fully integrated common air transport market in North America.

"We are encouraged by Minister LaPierre and Secretary Mineta's commitment to renewed discussion to modernize the 1995 agreement," said Robert Milton, Chairman, President and Chief Executive Officer, ACE Aviation Holdings Inc.

"It is time for Canada and the U.S. to take the necessary steps to build on the successes of the 1995 Open Skies Agreement by moving to an unrestricted, single aviation market that will generate more choices for consumers and create a healthier North American airline industry. The 1995 agreement was a great start, but it is quickly becoming outdated and if left unattended, risks being entirely out of step with current market realities and airline policy in competing jurisdictions.

"In recent years, we have seen unprecedented upheaval in the airline sector. International alliances have grown in importance, security and transit issues remain top of mind, the U.S. and the EU have entered into full-fledged Open Skies negotiations and legacy carriers throughout the world are going through difficult and lengthy restructurings. North American carriers are taking aggressive steps to become more efficient and to reduce costs but need policies that will support the long-term health of the sector.

"This past 10 years has shown us that the liberalization of air policy between our two countries has been a resounding success for consumers and for carriers, unleashing impressive growth opportunities in the Canada-US air travel market on both sides of the border. In fact, prior to the 1995 Agreement, Air Canada served only nine mainline and five regional carrier scheduled destinations in the U.S. Today Air Canada, Air Canada Jazz and its commercial partners operate more than 385 non-stop flights per day on 79 routes to and from 49 U.S. and 6 Canadian points.

"We must not lose the momentum we have worked so hard to achieve through the 1995 agreement. We look forward to getting back to the table with our largest trading and aviation partner to develop the Open Skies Agreement our two countries deserve."

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