No. H 104/09
For release - July 21, 2009

Canada reaches Blue Sky agreement with New Zealand

"The agreement will help facilitate stronger business ties and enhance tourism between Canada and New Zealand," said Minister Day. "As well, it will help create new jobs for our economy, expand market potential and build connections for our citizens and business across the Asia-Pacific region."

The new agreement allows any number of air carriers from either country to operate passenger and all-cargo scheduled air services as frequently as desired, to and from any point in either country's territory. Air carriers of both countries will also be able to pick up traffic in each other's territory and continue to a third country en route to or from their home territory.

The agreement also provides for enhanced all-cargo rights, allowing stand-alone cargo services between each other's territory and third countries, and includes a fully flexible tariff regime.

"I am pleased with the signing of this agreement with New Zealand, which is in line with Canada's Blue Sky international air transportation policy," said Canada's Transport Minister, John Baird. "The agreement provides air carriers with more flexibility to offer a greater range of options for Canadian travellers, shippers and businesses."

This new air transport agreement between the two countries replaces the agreement that has been in force since 1985.

Canada's Blue Sky policy encourages competition and the development of new and expanded international air services to benefit Canadian travellers, shippers, and the tourism and business sectors. In recent years, Canada has successfully expanded agreements covering all of its most important markets and plans to continue opening up new opportunities for the Canadian air industry in 2009.

To see how the Government of Canada is delivering on Canada's Blue Sky policy, visit www.tc.gc.ca/bluesky.

– 30 –

Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/e-news and keep up-to-date on the latest from Transport Canada.

This news release may be made available in alternative formats for persons living with visual disabilities.