15 November 2005

United States, Canada Reach Open-Skies Aviation Agreement

Pact is expected to take effect formally in September 2006

The United States and Canada have reached a full Open Skies aviation agreement that permits unrestricted service by the airlines of each country to, from and beyond the other's territory, according to the U.S. Department of Transportation (DOT).

In a November 11 press release, the DOT announced that the agreement had been reached after three days of bilateral talks in Washington.  "Open Skies between the United States and Canada will mean better service at lower prices for the passengers and shippers of both countries," said U.S. Transportation Secretary Norman Mineta.

Following is the text of the DOT press release, with further details:

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U.S. DEPARTMENT OF TRANSPORTATION
Washington, D.C.

FOR IMMEDIATE RELEASE
Friday, November 11, 2005

United States, Canada Reach Open-Skies Aviation Agreement

The United States and Canada today reached a full Open-Skies aviation agreement that removes all economic restrictions on air services to, from and beyond the other's territory by the airlines of both countries. Today's agreement, reached after three days of talks in Washington, builds on the liberalized accord reached in 1995 between the two countries and will make Canada the United States' 73rd Open-Skies partner.

"Open Skies between the United States and Canada will mean better service at lower prices for the passengers and shippers of both countries," U.S. Transportation Secretary Norman Y. Mineta said. "With this agreement, we will fully open the skies between the United States and our largest aviation partner, completing the liberalization efforts first initiated by an agreement ten years ago."

The volume of air traffic between the two countries magnifies the significance of this agreement. Last year, 18,948,661 passengers flew nonstop between the United States and Canada on 371,997 flights.

Open-Skies agreements permit unrestricted service by the airlines of each side to, from and beyond the other's territory, without restrictions on how often carriers fly, the kind of aircraft they use, and the prices they charge.

The new agreement will amend the 1995 accord which eliminated most restrictions on air service between the United States and Canada. The earlier agreement fell short of a full Open-Skies agreement in that it provided virtually no rights for airlines to fly beyond the other country and severely limited express cargo services. These restrictions are removed in the new agreement.

The two governments anticipate that the agreement will formally take effect in September 2006.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)