- Reaction score
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From the CTV.ca pieceJim Seggie said:Does anyone have any insight as to what those demands are?
I'm guessing Air Canada is opposed for competitive reasons, but I wonder why Transport Canada would be opposed?.... The UAE threatened to close the base unless Canada gave additional landing rights to its two commercial airlines, Emirates Airline and Etihad Airways -- including for direct routes to Calgary and Vancouver.
An insider told CTV News that Canada was essentially being used as a pawn in heavy-handed blackmail. Transport Canada and Air Canada opposed the move ....
- edited to add following -
Apparently, this isn't an entirely new story - this from a 15 Mar 10 industry analysis piece....
Last week the United Arab Emirates upped the ante in a battle over market access to Canada for its national airlines, Emirates and Etihad. By introducing the issue of Canada’s military bases into the aviation bilateral argument, the UAE hardly used a new tactic in this age old and archaic industry. Aviation is so close to national economic interests that it raises all sorts of sensitivities which seem bizarre to outsiders – perhaps because they are exactly that.
Canada and its flag carrier, Air Canada predictably responded with shock and horror, insisting that a restrictive aviation policy was in the national interest. Moreover, it said, admitting these government-owned airlines would be unfair and disastrous for Air Canada. Meanwhile consultants, Intervistas, had produced a report suggesting that Canada was missing out on a potential CAD480 million in economic benefits if Emirates Airline were prevented from expanding. This review examines some of the arguments raised in favour of the status quo, suggesting that the Canadian government is, like King Canute, seeking to hold back the tide of consumer-driven air travel policy. It questions if this approach is in Canada’s – or even Air Canada’s – best interests.
(....)
Transport Canada spokesman Patrick Charette last week affirmed that, "officials continuously monitor the Canada-UAE market to ensure it is not underserved, as this would not be in the commercial interest of either country….The rights under the current Canada-UAE air transport agreement meet the market demands of travellers whose origin or final destination is either Canada or the UAE."
And Air Canada’s pilot union head, Captain Paul Strachan, also adheres to the old aviation trade mantra, maintaining Emirates "has a tactic to break into markets and expand aggressively, but free trade in aviation has to be fair trade. In this instance, it's a lopsided proposal by Emirates." (There is actually nothing in the definition of free trade to require that it be “fair”, if that simply means protecting a weaker competitor against a supplier providing a commercially viable service.)[2]
Transport Canada too says there is no seat shortage (on the end-to-end route), and has resorted to use of the ugly old cornerstone of aviation protectionism, saying that the UAE does not offer “reciprocity” – that is, airline reciprocity, meaning basically that each country’s airlines must have the ability to make equal money on the specific route. Reciprocity does not account for consumers, but is a throwback to the bad old days of regulation, which IATA’s CEO and Director General, Giovanni Bisignani, has been fighting so hard to overcome.
Then of course, Air Canada itself is categorical about the need to protect it from the new world of air travel. In a lengthy diatribe directed at Emirates last week, Air Canada CEO, Calin Rovinescu further elaborated this reactionary theme: “Competition for international traffic flows must exist on a level playing field that provides equal opportunities for all. Any trade agreement – and that is what an air bilateral agreement is – must be fair, balanced and mutually beneficial.” What he meant was mutually beneficial for the airlines – not for consumers.
Mr Rovinescu argued that access restrictions “remain for good reasons. The bilateral agreement between Canada and the United Arab Emirates is a case in point. Simply put, the market between Canada and the UAE has not developed to the point where more capacity is warranted. Period. Full stop. There are already more airline seats being flown between Dubai and Canada than there are people to fill them. No adjustments to the Canada-UAE bilateral are warranted at this time and in our view it would be short-sighted on the Canadian Government’s part to yield to the massive lobby effort underway by Emirates and the UAE.” ....