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Report: Canada should initiate EU open skies pact

Report: Canada should initiate EU open skies pact

Laptop Battery Given the apparent impasse in open skies negotiations between Europe and the United States, Canada should take the lead and stimulate Europe's interest in a Canada-European Union agreement modelled on the European proposal to the U.S..

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Thinkpad The recommendation comes from Pierre Jeanniot, Director General Emeritus of the International Air Transport Association (IATA) and former CEO of Air Canada, in a position paper published today by the Montreal Economic Institute (MEI).

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Microsoft Should Canada be successful in proposing an agreement with Europe, 25 bilateral air transport agreements would be replaced by a single agreement covering the entire European Common Market, giving Canada open skies access to 450 million people.

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Laptop Computers "For its part, the European Union would have achieved successful implementation of its Common Atlantic Air Market approach with a major North American partner," writes Mr. Jeanniot.

The European Central Bank had strongly protested a move by the EU Commission that relaxed public borrowing conditions by its members. That stability pact was made more flexible in March. That change was done for the benefit of France, which permits countries to exceed the 3 percent ceiling if the move is small and temporary, and there are sound underlying finances. EU members are to review Almunia's report and if backed, it could be referred to finance ministers as early as July.

Laptop Computer The former Air Canada CEO believes the experience gained in a Canada-EU open skies agreement would be useful to all parties and, in time, could help overcome the reluctance expressed by Americans toward further trans-Atlantic liberalization.

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Desktop Computer "A large part of world aviation continues to operate under a bureaucratic system of intergovernmental agreements which pretend to know better than the market, and thus dictate which carriers are allowed to fly to what destination, how often and still, in some cases, at what tariffs. Canada should take the lead and try to influence the liberalization of air transport markets over the Atlantic in a more significant way," concludes Mr. Jeanniot.

Notebooks Pierre Jeanniot was president and CEO of Air Canada from 1984 to 1990 and director general and CEO of the International Air Transport Association from 1993 to 2002.

Lenovo He will present his paper at the Global Air Transport Outlook Conference in Montreal later this week. The paper is also available on the MEI's Web site at www.iedm.org .

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