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Wed, Dec 10, 2008

EU Signs Open Skies Agreement With Canada

And Unlike US Pact... This One Is REALLY Open

Like the US, Canada has reached an Open Skies agreement with the European Union, lowering barriers to international airline competition. Airlines based in the 27-nation EU bloc will be able to fly directly to Canada, and vice versa.

But The Associated Press reports that unlike the deal between the EU and the US, Canada has gone a step further, and will allow foreign ownership in its domestic airlines.

EU Transport Commissioner Antonio Tajani says the deal with Canada will spur trans-Atlantic trade and competition once it takes effect in the first half of 2009 as planned.

"The new agreement makes the EU-Canada market one of the most open in the world," Tajani added.

If that sounds like a jab at the US... it's apparently meant to be. The US deal did not open airlines up to international mergers and code-sharing. Instead, that area was left to be settled later. Talks started earlier this year. If remaining issues aren't resolved to the EU's satisfaction, the US Open Skies pact with Europe will expire.

Europe also announced more limited agreements with Israel and Armenia on Tuesday.

FMI: www.eu.int

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