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DESTINATIONS Canada


to the current rule have been granted to low-cost carriers Canada Jetlines and Enerjet.


But in a blog, Karl E Gustafson, QC at McMillan LLP, questioned how efficacious the new limit would be. The notion that an airline must be “controlled in fact” by Canadians remains. Gustafson also notes that the Canadian Transportation Agency has found that control does not necessarily reside with Canadians even when the voting interests held by non-Canadians are limited to 25%. “It is difficult to see how the proposed


increase in the threshold for voting interest to 49% will have the desired effect of facilitating an increase in investment by foreigners in Canadian airlines,” he said. “Given the broad range of factors that the agency will consider in assessing whether control in fact resides with Canadians as required by the CTA, allowing non-Canadians to hold 49% of the voting interests is not helpful. In fact, the challenge for a Canadian airline to demonstrate “control in fact” by Canadians will be even more daunting if 49% of its voting interests are held by foreigners.”


Inevitable movement New problems may at least disguise the fact that age-old issues remain. While NAV CANADA, the country’s air navigation service provider (ANSP), is held up as an example worldwide for other ANSPs to follow, the situation on the ground is dogged by constant complaints about cost. Taxes and fees for Canadian passengers


are among the highest in the world. The US system is about 10 times cheaper in this regard and given that 80% of Canadians live close to the US border, the inevitable happens. A 2013 report One Size Doesn’t Fit All by the Senate Committee on Transport


• Serves more than 200 airports on six continents


Air Canada in numbers


• Provides scheduled passenger service to 64 airports in Canada, 54 in the US and 87 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America


• It is a founding member of Star Alliance, one of the world’s most comprehensive air transportation networks serving 1,330 airports in 192 countries


46 ISSUE 1 ROUTES NEWS 2017 routesonline.com


Air Canada has added six new destinations to its international network


facts and figures


Canada • It is the second


largest country in the world by area


• It has the 10th largest economy • 56.9% of Canadians have English as a first language. French is the native tongue of 21.3%.


• The capital, Ottawa, was chosen as the seat of government in 1857 because it was far enough away from the US border to avoid attack and between Toronto and Quebec, two competing powers.


and Communications suggests that more than five million Canadians drive over the border to use US airports and access cheaper flights and greater connectivity. Canada ranks 124th out of 141


countries when it comes to ticket taxes and airport charges, according to the 2015 World Economic Forum Tourism Competitiveness Report. Charlotte Bell, Tourism Industry Association of Canada president and CEO, has commented that “Canada is a world-class destination”, but that “the added cost of fees, taxes and levies added to air often prices Canada out of contention”. Even US low-cost carriers tend to avoid Canada, preferring instead to pick up the influx of Canadian passengers on the US side of the border. Canada shouldn’t be a tough sell.


The great outdoors, from Niagara Falls to the Rockies, coupled with vibrant, cosmopolitan cities put it close to the top of any traveller’s bucket list. The incredible variety of influences mean there is always something unexpected around the corner. But it is a country dependent on air


travel. Amazingly, the federal government doesn’t seem to treat the industry as it should. And that may just be the biggest surprise that Canada has to offer. £


Taxes for Canadian passengers are among the world’s highest


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