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International aviation: Canada

The Canada – EU Air Transport Agreement, signed on 17/18 December 2009, is so far the most ambitious air transport agreement between the EU and a major partner in the world. It had been finalised in November 2008 and was endorsed by the EU-Canada summit in May 2009.

The agreement was negotiated by the Commission under a mandate received from the Council in October 2007 and will replace the existing bilateral agreements concluded with Canada by Member States. This agreement will significantly improve both the connections between respective markets and people-to-people links, and will create new opportunities in the airline sector through a gradual liberalisation of foreign ownership rules.

It includes a gradual phasing-in of traffic rights, investment opportunities, as well as far reaching cooperation on a number of issues including safety, security, social matters, consumer interests,environment, air traffic management, state aids and competition. According to a study launched by the Commission, the Agreement may generate consumer benefits of at least € 72 million through lower fares and could create 3 700 jobs already in the first year and is therefore a particularly important signal in the current economic crisis.

The Agreement is groundbreaking in the aviation world as the agreement includes all possible aspects of aviation, including investment.

All EU airlines will be able to operate direct flights to Canada from anywhere in Europe. The Agreement removes all restrictions on routes, prices, or the number of weekly flights between Canada and the EU. Other traffic rights will be liberalised gradually in parallel with the opening up of investment opportunities. The agreement will finally establish a full Open Aviation Area between the EU and Canada. EU nationals will be able to establish operations in Canada and freely invest in Canadian airlines and vice versa.

Furthermore, the agreement will help tackle common challenges, such as security or the environment. Both sides agreed to closely cooperate in order to mitigate the effects of aviation on climate change. In the field of safety and security, the agreement envisages mutual recognition of standards and one-stop security. Specific provisions to improve consumer interests are also included. This will facilitate the operations for airlines and airports, and reduce hassle for passengers. The text provides for a strong mechanism to ensure that airlines cannot be discriminated in terms of access to infrastructure or state subsidies, another real novelty in international aviation.

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Last update: 01/11/2010 | Top