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ARTICLE · 29 AUGUST 2006

Taking Flight: Expanded Canada/U.S. Open Skies to Begin September 2006

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Beginning September 1, 2006, a new "Open Skies" agreement between Canada and the United States is scheduled to take effect.

CanadaTransport
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McMillan LLP
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Beginning September 1, 2006, a new "Open Skies" agreement between Canada and the United States is scheduled to take effect. The expanded agreement, reached on November 11, 2005, will provide passenger and cargo carriers on both sides of the border with greater access and increased pricing flexibility.

The changes expand upon the earlier governing agreement entered into on February 24, 1995, which provided carriers with the ability to operate unlimited service to any points in the partners’ respective territory, without restrictions on capacity or frequency of service. The 1995 agreement also left prices unregulated, subject to both governments finding any fare inconsistent with a set of anti-competitive principles outlined in the agreement.

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