The United States and Canada have reached a full Open-Skies aviation agreement that removes all economic restrictions on air services to, from and beyond the other’s territory by the airlines of both countries.

The agreement, reached after three days of talks in Washington, builds on the liberalized accord reached in 1995 between the two countries will make Canada the United States’ 73rd Open-Skies partner.

“Open Skies between the United States and Canada will mean better service at lower prices for the passengers and shippers of both countries,” U.S. Transportation Secretary Norman Y. Mineta said.

“With this agreement, we will fully open the skies between the United States and our largest aviation partner, completing the liberalization efforts first initiated by an agreement ten years ago.”

The volume of air traffic between the two countries magnifies the significance of this agreement. Last year, 18,948,661 passengers flew nonstop between the United States and Canada on 371,997 flights.

Open-Skies agreements permit unrestricted service by the airlines of each side to, from and beyond the other’s territory, without restrictions on how often carriers fly, the kind of aircraft they use, and the prices they charge.

The new agreement will amend the 1995 accord which eliminated most restrictions on air service between the United States and Canada. The earlier agreement fell short of a full Open Skies agreement in that it provided virtually no rights for airlines to fly beyond the other country and severely limited express cargo services. These restrictions are removed in the new agreement.

The two governments anticipate that the agreement will formally take effect in September 2006.

FMI: www.dot.gov