Originally Posted by ILYR
This could be interesting for Winnipeg, specifically increasing the potential of the cargo activities. Maybe we'll even see some passenger flights passing throgh Winnipeg ... and not just because of airrage.
Canada, U.S. Open Skies deal set for takeoff
Carriers can now pick up passengers, cargo in either country before heading overseas
PETER MORTON, CanWest News Service
Published: Tuesday, March 13, 2007
Canadians might be seeing cheaper flights to the U.S. and overseas now that Canada and the U.S. have finally implemented a 2-year-old Open Skies agreement.
As of today, Canadian and U.S. airlines will be able to pick up passengers and cargo in each other's country as long as the flight is continuing on to a third country.
The original deal, initialed in 2005, was intended to boost cross-border air traffic in passengers and cargo, but was never implemented.
t a signing at Ronald Reagan International Airport yesterday, Transport Minister Lawrence Cannon said the pact is long overdue.
"And it may lead to lower prices as well," he said, a view echoed by U.S. Transport Secretary Mary Peters.
"Our new aviation relationship will stimulate stronger partnerships, innovation, more choices and lower prices to the benefit of both countries," she said.
Designed to replace a 1995 agreement, Canada and the U.S. have agreed to allow each other's airlines broader access to their domestic markets.
In the case of passengers, airlines will be allowed to pick up passengers in each country as long as the flight is destined for another country.
"What this means is that a Canadian airline can now fly, for example, from Toronto to New York, pick up passengers in New York and continue on to Amsterdam," Cannon said.
Both countries, so far, have refused to allow cabotage - allowing foreign airlines to ferry passengers between cities in the other country - for fear of undermining domestic service.
However, cargo flights will now be allowed to cabotage packages in each other's country under the so-called seventh freedom part of the Open Skies pact, a Canadian transport official said.
Cross-border cargo traffic hovers around $30.5 billion a year.
One reason the original 2005 deal was never implemented was Air Canada had applied for global anti-trust immunity because of its relationships with other airlines.
Air Canada planned to use the Open Skies deal to launch flights from Toronto to Los Angeles to Sydney, Australia. Now, it plans to launch those flights through Vancouver, a spokesman said.
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