Hill Welcomes Competition in Canada’s Airline Industry

January 29, 2001

OTTAWA-Canadian Alliance Chief Transportation Critic, Jay Hill, today welcomed the merger of Canada 3000 and Royal Airlines as a positive step in re-establishing competition in Canada’s domestic air carrier industry.

“If some of the small and emerging airlines seize opportunities to merge or form partnerships and thereby provide increased and more effective opposition to Air Canada, it should be good news for the industry and the travelling public,” stated Hill.

The Canadian Alliance has been calling on federal Transport Minister David Collenette to raise the maximum foreign ownership percentage of Canadian domestic airlines from the current 25% to 49% in an effort to provide increased capital to those emerging airlines.

“A monopoly is only beneficial to Air Canada.  Canada is a huge country and we need choice and competition in order to provide consumers with an adequate level of service at an affordable price.  The emergence of Canada 3000/Royal Airlines as the second largest carrier in Canada will begin to provide Canadians with an economical alternative.  This is the first step in a marathon of change needed to establish viable competition in Canada…. there is much more to be done,” Hill added.

Jay Hill has called upon Minister Collenette to request that the Standing Committee on Transportation study airline industry in particular creating a competitive airline environment, and calling on Air Canada CEO Robert Milton to testify before the Committee.  Mr. Hill has also asked to have the Committee investigate the controversial aviation regulatory regime pertaining to fire and rescue services at Canada’s small and medium sized airports (CARS308).

“Canadians are at their wit’s end with the airline industry and the future viability of our small airports is in jeopardy.  Jobs and service are being cut; airfares are increasing; all at a great disservice to the travelling public and those communities and businesses who are adversely effected.  The Standing Committee on Transport must be the vehicle to investigate these problems and find the necessary solutions,” concluded Hill.