Business | Aviation
Canada skies all but open, carriers say
Emirates airline is fighting attempts by a Canadian government ministry to limit both its and Etihad's access to the country, despite Canada's official "open skies" policy.
- By Mick O'Reilly, Deputy Managing Editor, and Nadia Saleem, Staff Reporter
- Published: 22:41 July 26, 2009
Toronto and Dubai: Emirates airline is fighting attempts by a Canadian government ministry to limit both its and Etihad's access to the country, despite Canada's official "open skies" policy.
Under the policy, foreign carriers are supposed to be actively encouraged to begin services to Canadian destinations. Transport Canada, the federal ministry responsible for enforcing the policy, is actively trying to prevent both UAE airlines from gaining more access to the Canadian market.
Currently, Emirates and Etihad services are limited to a combined six flights a week from the UAE to Toronto. In the autumn, Emirates moved from a Boeing 777 aircraft to an Airbus A380 superjumbo to accommodate greater passenger loads.
Both UAE carriers want to increase the number of flights weekly and add other destinations, including the oil-industry centre of Calgary and Vancouver, site of the 2010 Winter Olympics in February.
"This is a matter between the two governments, although Etihad has made no secret of the fact that it would like to increase the number of flights between Abu Dhabi and Canada," an Etihad Airways spokesperson told Gulf News.
Emirates also said that it would like to "sensibly grow" its flights to other Canadian cities, such as Calgary and Vancouver.
According to published reports, senior Canadian cabinet ministers are pushing for closer economic and political ties with the UAE.
Emirates and Etihad's requests for more access have also won the backing of provincial governments and the destination cities themselves.
The various levels of government welcome the opportunity for tourism, new investments and employment.
Even if the two carriers boosted service to Toronto alone, an estimated 500 new jobs would bring in some Dh66 million annually as well as increased landing-fee revenues at Canada's most expensive airport.
Despite the airlines' efforts and the support of political leaders, officials at Transport Canada are discouraging the increase in services.
Published briefing papers show the bureaucrats reasoning, including an objection that the airlines are "instruments of government policy", with the Dubai and Abu Dhabi governments "helping finance massive wide-body aircraft orders and massive expansion of airport infrastructure".
Transport Canada officials also claim the market between Canada and the UAE is small, offering little potential for growth.
They are also anxious to protect Canadian carriers, arguing that the open skies policy should not go as far as to potentially damage its national interests.
But the officials also went further, suggesting that the rapid expansion and success of Arabian Gulf carriers, enabled by the backing of various GCC governments, is leading to "unhealthy competition and irrational commercial behaviour".
Emirates has reacted strongly to the briefing papers, with a senior airline executive accusing the agency of making "slanderous" allegations.
Andrew Parker, a senior vice-president of Emirates, wrote a stinging rebuke, saying that despite the promise of economic benefits, Transport Canada is desperately trying to keep the global carrier out of the world's second largest country.
"The language Transport Canada has used over the past decade is aggressive, often biased and deeply objectionable to this carrier," Parker writes in a published letter to the government agency.
"The real aim of these objections is sadly to keep Emirates permanently away from Canada. Emirates will not be deterred."
His six-page rebuttal says the Transport Canada allegations are "strongly in error."
Business Editor's choice
-
UNB net profit rises 11% to Dh1.5b in 2011
Results are affirmation of prudent strategy pursued by group focused on targeted markets, key business segments
-
PTL Solar launches course in renewal energy
Programme will provide hands-on training to students
-
Nokia earnings hit by restructuring
Attributes €1.2b loss to one-time factors including closure of factory and asset revaluation
