Air Canada praises Lapierre's call to liberalize internation

[Blastor]

Air Canada praises Lapierre's call to liberalize international airline travel
David Paddon / Canadian Press

Saturday, October 30, 2004

TORONTO (CP) - Air Canada's top executive gave a big thumbs-up Friday to a federal review of Canada's airline policies, particularly Ottawa's apparent willingness to liberalize international airline travel.

Robert Milton, who called two years ago for a unified North American aviation market, praised a policy review announced this week by federal Transport Minister Jean Lapierre.

Lapierre said at an industry conference Friday that he thinks this is the right time for Canada to review the many government restrictions on domestic and foreign airlines.

In particular, he said the review should look at limits on foreign ownership of Canadian airlines, as well as the issue of whether foreign carriers should be allowed to compete on domestic Canadian routes.

Also under review will be federal rents at Canadian airports, which airlines say are strangling them.

"I believe we have a great opportunity now to create an air policy that will serve Canada well for the next 10 years," Lapierre said.

Conditions are ripe for change, with the economy growing, a revitalized Air Canada recently out of bankruptcy and smaller carriers such as WestJet, CanJet and Jetsgo providing alternatives.

"One of the major issues I believe we need to address - now - is liberalization of our air policies," Lapierre said.

"For nearly a quarter of a century, the federal government's air policy has been built on protecting what we have, rather than building something better," he added.

"Now is the time to build an aggressive, forward-looking, market-driven framework that will help the industry compete regionally and globally."

Although Milton wasn't at the conference, he began an open letter to the minister by offering congratulations, and stressed that "everyone at Air Canada is committed to assisting you in making this vision a reality."

Lapierre, named transport minister by Prime Minister Paul Martin in July, told reporters after his speech that he hasn't yet met Milton, who has headed Air Canada since August 1999.

Milton was often publicly at odds with former transport minister David Collenette, who insisted that the American government and the U.S. aviation industry were not receptive to deregulation talks with Canada.

Collenette did suggest that he would consider allowing U.S. carriers to compete on Canadian domestic routes if Air Canada crushed all domestic competition. However, he ruled out unilaterally opening Canada's air travel market to foreign carriers unless home-grown competition failed to develop.

Lapierre said Friday that he wouldn't rule out unilateral action but said U.S. Transportation Secretary Norman Mineta recently indicated he is interested in bilateral talks to extend the 1995 Open Skies agreement that relaxed some barriers between the two countries' airline markets.

"It's obvious that bilateral agreements are better," Lapierre told a conference delegate. "We'll let the committee do its work and we'll see."

Pressed on the issue by reporters, he said: "We're going to make policy for Canada and then we'll discuss with our partners."

It may be in Canada's best economic interest to allow foreign carriers greater access to domestic routes, Lapierre said, adding that "a lot of people" have told him it's time to take a new look at the policy.

"And that's what I intend to do."

The minister made his comments at an aviation investment conference organized by Insight Information, which gave reporters access to the event on the condition that its name be mentioned in their stories.

© The Canadian Press 2004

[LT]

Wasn't NAFTA a big scandel?

"For nearly a quarter of a century, the federal government's air policy has been built on protecting what we have, rather than building something better," he added.

Ahhh, looks like Martin will be wanting to get in the Airline Business too...

Think the 2 billion gun registry was supposed to be "something better"

Maybe the government should work for us..

Collenette did suggest that he would consider allowing U.S. carriers to compete on Canadian domestic routes if Air Canada crushed all domestic competition. However, he ruled out unilaterally opening Canada's air travel market to foreign carriers unless home-grown competition failed to develop.

ROFL... I think the competition crushed Air Canada.. I do recall someone declaring bancruptcy..

[Canus Chinookus]

what i don't understand, is why milton would agree with lapierre...