Originally published in Blakes Bulletin on International
Trade & Investment, December 2008
Canada and the 27 member countries of the European Union (EU)
announced on December 9, 2008, an open-skies air transport
agreement that both claim is an important step towards a greater
economic partnership between the parties.
THE LIFTING OF INVESTMENT LIMITS AND RESTRICTIONS ON AIR
While the agreement has not been released, apparently it will
provide for the opening of the air transport market in four
"Phase One", effective immediately, allows for direct
services (on an airline's own aircraft or that of another
carrier) between Canada and the EU without any limitations on the
number of flights operated, the number of airlines flying, or the
number of services operated by any airline. All cargo airlines will
also be permitted to fly onward to a third country.
"Phase Two" begins when Canada enacts legislation to
increase foreign ownership caps in Canada from 25% (the current
rate) to 49% of a Canadian carrier's voting equity. Phase Two
will grant cargo airlines from either Canada or the EU the right to
operate such services to a third country from the other party.
"Phase Three" commences when both Canada and the EU
enable investors to set up and control new airlines in each
other's markets. Thereafter, these new passenger airlines will
be able to fly to a third country.
"Phase Four" begins when both Canada and the EU allow
existing carriers owned by nationals in their respective
jurisdictions to be owned and controlled by nationals of the other
party. This phase will grant rights to operate between, within and
beyond both markets. It includes the removal of cabotage laws,
which would then allow EU carriers to fly between two points in
Canada and vice versa for Canadian airlines in European
Given this multiphase approach, the politically controversial
issues of allowing foreign-owned airlines to set up and control
domestic airlines in each other's markets and the lifting
cabotage laws have been deferred to a later date.
CO-OPERATION ON REGULATORY ISSUES
The agreement apparently includes several provisions dealing
with air transportation regulatory issues:
Provisions for the eventual mutual recognition of safety
standards and harmonization of approaches to aviation
Provisions that, to the extent possible, will allow for the
stationing of airlines representatives, ground handling of aircraft
and access to ground and marine modes of transportation associated
with air services;
The establishment of a joint EU-Canada committee that is
intended to facilitate co-operation, information-exchange,
consultations and the overall implementation of the agreement;
Provisions regarding consumer interests, international
co-operation, the environment, co-operation in the area of air
traffic management, as well as the effective availability of
airport and aviation facilities and services.
TIME NEEDED TO ASSESS IMPACT
Government sources in both Canada and the EU are using such
words as "historical" and "groundbreaking" to
describe the agreement. However, given that few details have been
released, further analysis of the agreement must await the passage
of time. Any conclusions regarding the impact of the agreement and
how it will operate should be reserved until a comprehensive review
of its provisions has been conducted.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Please join members of the Blakes Commercial Real Estate group as they discuss five key provisions of a commercial real estate purchase agreement that are often the subject of much negotiation but are sometimes misunderstood.
Emotional culture is influenced in great part by the mindset and actions of leadership, although employees also play more of a role than they may realize in creating the culture that exists in the group.
The session will be led by Dr. Robert Brooks, an award-winning author and psychologist. In his presentation, Dr. Brooks will describe the mindset and realistic practices of leaders and staff that help to nurture and sustain a culture characterized by positive emotions, satisfying, respectful relationships, a sense of meaning and ownership for one’s work, and enhanced job performance. Examples will be offered to illustrate strategies for developing a positive emotional culture in an organization.
Join leading lawyers from the Blakes Pensions, Benefits & Executive Compensation group as they discuss recent updates and legal developments in pension and employee benefits law as well as strategies to identify and minimize common risks.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).