Brussels, 10/12/2008 (Agence Europe) - EU Transport Commissioner Antonio Tajani briefed EU transport ministers on Tuesday 9 December 2008 about the finalising of an Open Skies agreement between the EU and Canada, initialled by Tajani on 30 November 2008. The deal will gradually lead to the full liberalisation of the EU and Canadian air transport markets, whereby EU airlines will be free to operate in Canada and can invest in Canadian airlines, and Canadian airlines will have similar rights in the EU. The EU has been trying in vain to get the United States to agree to similar measures. The deal with Canada may come into force next year.
The Open Skies agreement is based on the negotiating mandate granted to the European Commission by the Council on 2 October 2007 (see EUROPE 9515) and covers everything the EU has failed to achieve in talks with the United States. Air traffic freedoms will gradually be granted alongside the right to invest. In practice, implementation of the deal will occur in four phases, and full signature of the agreement may take place in the first six months of 2009 under the Czech Presidency. Initially, the entry into force of the agreement will liberalise air traffic between the EU and Canada. Airlines will be able to operate on either side of the Atlantic without any restrictions on pricing, departure airport, number of flights a week or flight path (3rd and 4th air freedoms). In the next stage, after the Canadian government has changed its legislation (scheduled for next year), EU investors will have the right to buy up to 49% of Canadian airlines (Ed: EU legislation does not impose any limits on ownership by a non-EU country or another airline as long as the non-EU investor does not hold a majority stake in an EU airline). In return, Canadian airlines will be able to fly from one airport in the EU to another and then on to others within the EU (fifth intra-EU freedom, or cabotage). The third stage foresees the introduction of reciprocal rights of establishment. The EU can establish airlines in Canada and Canadian airlines can be established in the EU. At the same time, airlines will be able to fly from the EU or Canada to other countries with the right to stopover in Canada or the EU (5th freedom). For example, a Canadian plane could fly from Montréal to Paris and then on to a country in Africa. An EU airline could fly from Paris to Los Angeles with a stopover in Montreal. The Canadian government is planning to introduce legislation at the end of next year to allow such flights. The final stage of the deal is full opening of the markets, whereby Canadians can buy EU airlines and EU airlines buy Canadian airlines. (A.By./transl.fl)