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.

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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