EU & Canada sign air deal leading to open skies
CanadaÃ¢â‚¬™s airports hailed the recent completion of an historic air service agreement between Canada and the European Union as Ã¢â‚¬Å“welcome newsÃ¢â‚¬Â for travellers, shippers and those who work in the aviation and tourism sectors.
June 1, 2009
Specifically the agreement initially provides airlines Ã¢â‚¬Å“unlimited freedoms to operate direct services between any point in Canada and the 27-country EU trading bloc.Ã¢â‚¬Â
Additional carrier rights take effect once Canada has taken the steps necessary to enable European investors to own up to 49 per cent of a Canadian carriersÃ¢â‚¬™ voting equity, up from 25 per cent currently. The Canadian government has already introduced such a proposal.
At a third stage, once both sides enable investors to set up and control new airlines in each othersÃ¢â‚¬™ markets, passenger airlines will be able to fly onward to third countries.
The final stage will come once both sides complete steps to allow the full ownership and control of their carriers by the othersÃ¢â‚¬™ nationals, and would provide carriers Ã¢â‚¬Å“full rights to operate between, within and beyond both markets, including between points in the territory of the other party,Ã¢â‚¬Â a set of rights known as cabotage, or eighth freedom rights.