The Canada-U.S. "Open Skies" Agreement: Are Canadian carriers doing well? - ARCHIVED

Articles and reports: 87-003-X19970023224


signed the "Open Skies" Agreement allowing both Canadian and American airlines to establish direct links between any pair of cities located on either side of the border. This opening of air space comes within the scope of the general movement towards free trade with our main trading partner and will stimulate competition among North American air carriers for the largest transborder market in the world. The outcome of the agreement on companies' long-term share of the market remains to be seen. The agreement provides for a three-year transition period to allow carriers to adjust to new market conditions. Although all the agreement's provisions have not yet come into effect, changes in the industry are already noticeable. Since it would be premature to draw conclusions about the impact of the agreement, we focus first on the effect of the pact on the market share that American and Canadian companies have cornered after a year of "Open Skies". Secondly, we study the possible impact of the agreement on various stakeholders. This analysis uses data from Statistics Canada's International Travel Survey (ITS).

Issue Number: 1997002
Author(s): Gendron, François

Main Product: Travel-log (Touriscope)

FormatRelease dateMore information
PDFApril 3, 1997