HILL CALLS FOR MORE AIRLINE COMPETITION

May 8, 2001

OTTAWA-Today, in the House of Commons, Canadian Alliance Chief Transportation Critic, Jay Hill called on the Minister of Transport to revisit the government’s position on foreign ownership of domestic airlines in an effort to create competition in Canada’s airline industry.  

“Last week's demise of Roots Air proves that small carriers cannot compete with Air Canada on major routes. This morning the Standing Committee on Transport heard testimony from that very competition bureau that Air Canada does not currently face effective competition on a national basis and that the provisions of the Competition Act will not be sufficient to create a competitive domestic market.  

Is the minister now prepared to create real competition by allowing limited entry of foreign airlines into the Canadian market?. questioned Hill. 

The Minister responded that with the exception of Virgin Atlantic, foreign carriers are not interested in flying point-to-point in Canada, they only want access to the already competitive intra-urban routes. 

“It is time that this government examines the success that the Australian government has had in creating a competitive airline industry where one did not exist.” continued Hill, “The Competition Bureau has recommended to the government similar changes to the foreign ownership requirements for carriers operating within Canada and I think that they should be given serious consideration.” 

Hill’s comments were made on what is being billed as “Air Day”, a full day session of the Standing Joint Committee on Transport and Government Operations during which the Committee will hear from various witnesses on the state of the Canadian air industry. Among those appearing are David Collenette, Minister of Transport; Bruce Hood, Air Travel Complaints Commissioner; Debra Ward, Independent Transition Observer Air Restructuring; Konrad Von Finckenstien, Commissioner, Competition Bureau. The committee has hoped that Air Canada President and CEO Robert Milton would accept their invitation to appear but he chose to send two subordinates instead. 

“Mr. Milton had no difficulty finding time to appear before the committee when he needed approval of his acquisition of Canadian Airlines, I think he could at least extend us the courtesy of appearing to give us an update and respond to our concerns.” concluded Hill.