No. H127/05
For release June 7, 2005
CANADA AND INDIA REACH AIR AGREEMENT TO
PERMIT FIVE-FOLD INCREASE IN PASSENGER FLIGHTS
OTTAWA — Transport Minister Jean-C. Lapierre and International Trade Minister Jim Peterson today announced that the Governments of Canada and India have agreed to liberalize the countries’ current bilateral air transport agreement, allowing a five-fold increase in passenger flights between the two countries.
"This new arrangement will allow airlines of Canada and India to better meet the needs of the travelling public, including the business community, and reflects a shared commitment to improved air services between the two countries," said Mr. Lapierre.
"This agreement will help facilitate our rapidly growing commercial and scientific ties with India," said Mr. Peterson. "The extended air services will also spur tourism and cultural exchanges, which will benefit both countries."
Highlights of the agreement include:
Weekly capacity for passenger services will increase approximately five-fold to 35 roundtrip flights per week for each country.
Each country can designate as many air carriers as it wishes for flights between Canada and India.
Canadian air carriers can access the cities of Bangalore, Chennai, Hyderabad, Kolkata, in addition to Mumbai and Delhi.
Indian carriers can access Edmonton, Vancouver, and two other cities to be named by India, in addition to Montreal and Toronto.
Airlines of both countries will be able to take advantage of new code-share provisions whereby an airline sells seats in its name on the flights of another airline.
Capacity for all-cargo services is unlimited.
The new agreement sets the stage for the growth of Canada-India air services, and is consistent with Canada’s International Policy statement objective of creating sustainable, long-term relationships with new economic powers.
The active promotion of trade and investment by both countries has resulted in a record merchandise bilateral trade valued at about $2.45 billion, reflecting a trade relationship that has grown over 60 per cent over the past five years.
In light of the potential for rapid expansion of the Canada-India air transport market, the Canadian and Indian negotiating delegations agreed to meet again in 2007, or sooner if necessary, to ensure that the air services agreement continues to
meet the needs of the travelling public.
Previously, the agreement governing air services between Canada and India:
limited the number of air carriers that could serve the market;
restricted total capacity to approximately seven roundtrip flights per week for each country;
confined Indian carriers’ effective access to cities in Canada to Montreal and Toronto, and Canadian carriers’ access to Indian cities to Delhi and Mumbai; and
did not provide for the kind of flexible marketing arrangements, such as code-sharing, that have become prevalent in recent years.
- 30 -
Contacts:
Irène Marcheterre
Director of Communications
Office of the Minister of Transport, Ottawa
(613) 991-0700
Andrea Lanthier
Press Secretary
Office of the Minister of International Trade
(613) 992-7332
Robin Browne
Communications
Transport Canada
(613) 993-0055
Media Relations Office
International Trade Canada
(613) 995-1874
Transport Canada is online at www.tc.gc.ca.
Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date
on the latest from Transport Canada.
This news release may be made available in alternative formats for persons with
visual disabilities.
