 |
|
|
|
|
|
 |
|
|
|
| EU approves ‘open-skies’ deal with Canada |
| Brussle, 30.03.2009 |
|
| Scott Deveau, Financial Post
Published: Monday, March 30, 2009
The European Union gave the green light to a new air agreement with Canada Monday it hopes will bolster competition and air travel, and pave the way for even greater liberalization of the airspace across the Atlantic.
Efforts to raise the foreign ownership limits, however, are not expected to be ready in time for the deal’s signing despite Parliament passing the necessary amendments to the Canadian Transportation Act earlier this month.
The first phase of the air pact will allow European carriers to fly to Canada from any airport in their 27-nation bloc, and vice versa. It will replace a patchwork of bilateral agreements that were deemed to violate the EU’s efforts to establish itself as a single market by its high court.
Officials drafted a new pact in December, and the first phase is expected to be signed and implemented on May 6 in Brussels.
The move follows a similar arrangement between the EU and the United States, and has been lauded by Air Canada, WestJet Airlines Ltd., and Air Transat.
The EU expects the deal to increase the number of travellers across the Atlantic by nearly 40% within a “few years,” create 1,000 new jobs and generate about $120-million in economic activity. Roughly 9 million travellers flew between Canada and the EU in 2007, making it the second largest market behind the U.S.
The new deal comes as carriers around the globe struggle with declining demand and the worst revenue environment for 50 years, according to the International Air Transport Association, which increased its forecasted loss for the industry to US$4.7-billion in 2009 last week.
The EU air agreement eventually aims to raise foreign ownership limits on Canadian carriers, allowing the establishment of foreign-owned domestic airlines in each others markets - so-called right of establishment airlines - and to allow for airlines to carry passengers onto a third destination after landing in each others market, which is currently forbidden.
Parliament passed an amendment earlier this month as part of its budget package that will raise the foreign ownership cap on Canadian carriers to 49% from 25%. But Transport Canada said Monday the regulatory framework will not be in place to do so by the May signing.
Raising those caps quickly, however, could throw a "life line" to Air Canada with its liquidity issues, according to Ben Cherniavsky, Raymond James analyst.
"Although very few global carriers are in a strong enough financial position these days to help out Air Canada, the strategic value of the company's domestic feeder traffic to members of the Star Alliance cannot be underestimated," he said, in a recent note to clients.
In 1999, UAL and Lufthansa provided $730-million in financial support to Air Canada, fending off a takeover bid that would have seen it merged with Canadian Airlines and the oneworld alliance, he noted. "Albeit those were very different times," Mr. Cherniavsky said.
odkaz na stránku
|
|
|
|
|
|
|
|
|
|
|
|
|
Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
|
|
