Beginning September 1, 2006, a new "Open Skies" agreement between Canada and the United States is scheduled to take effect. The expanded agreement, reached on November 11, 2005, will provide passenger and cargo carriers on both sides of the border with greater access and increased pricing flexibility.

The changes expand upon the earlier governing agreement entered into on February 24, 1995, which provided carriers with the ability to operate unlimited service to any points in the partners’ respective territory, without restrictions on capacity or frequency of service....

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