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Several companies have released statements in response to the May 16 announcement by the Canadian government of its proposed Transportation Modernization Act.
Air Canada welcomes proposed Transportation Modernization Act
Air Canada provided the following statement:
“Air Canada welcomes the government’s desire to establish air passenger rights that are clear, consistent, transparent and fair for passengers and air carriers industry-wide. We believe it is in the interest of all parties to create a more predictable and fair system that applies to all airlines operating in Canada, which is not currently the case. Air Canada looks forward to participating in the consultation process relating to the new regulations over the coming months.
“The increase of foreign ownership limits to 49 per cent (from 25 per cent) should provide improved access to international investors and global capital markets for Air Canada.
“The proposed amendments to the legislative provisions governing joint ventures in the airline industry should facilitate the opening up of new markets by Air Canada and its joint venture partners and accelerate projects that are currently under consideration.
“Regarding the CATSA proposed amendments, we would have hoped that the government would have addressed shortfalls in CATSA funding and other shortcomings in a more comprehensive fashion so as to improve the overall air traveller experience. In addition, we continue to encourage the government to address aviation industry infrastructure, rates, taxes and charges.
National Airlines Council of Canada statement on Transportation Modernization Act
Massimo Bergamini, president and CEO of the National Airlines Council of Canada, has also released a statement on the tabling of the Transportation Modernization Act by the Minister of Transport:
“Our organization and members share and support Minister Garneau’s commitment to ensuring that all air passengers have the best air travel experience possible and look forward to working with him and with the Canadian Transportation Agency to this end.
“Our members and their employees work hard every day to ensure a safe and enjoyable air travel experience for our passengers and guests. We are proud of our customer-satisfaction record–71.2 million passenger movements in 2015-16 with only 507 Canadian Transportation Agency complaints –and are always striving to do better.
“But we also recognize that air-[to]-air travel experience doesn’t start with check-in and end with baggage pick up. We therefore also look forward to working with the Minister to address and fix those passenger rights issues that result from government policy or operations. For example, air passengers should have a right to fluid and efficient security screening that avoids delays resulting in stressful last-minute boarding of flights and missed connections, as well as cascading disruptions across the system.”
WestJet comments on Transportation Modernization Act
WestJet has commented on federal Transport Minister Marc Garneau’s introduction of the Transportation Modernization Act including his request that the Canadian Transportation Agency (CTA) develop a passenger bill of rights:
“For more than 21 years, we have taken great pride in our award-winning culture of care and the efforts of our more than 12,000 WestJetters to deliver a remarkable guest experience each and every day,” said Mike McNaney, WestJet vice-president, industry, corporate and airport affairs. “We welcome the legislation and are committed to working with the CTA, the Minister, parliamentarians and government agencies in the months to come.
“We also encourage the government to address all aspects of the travel experience, particularly those beyond the control of airlines such as lengthy wait times for passenger screening and customs,” said McNaney. “We believe that any effort to improve the guest’s travel experience must take into account all aspects of that experience, in particular those services provided by the federal government.”
Transat urges appropriate follow-up concerning proposed air sector initiatives
With respect to the proposals to enhance airline consumer protections, Transat has taken due note of same and will work proactively with industry partners, the federal government and the Canadian Transportation Agency to ensure that a fair and balanced framework is achieved in this regard.
“We all share the common objectives of improving the travel experience for our customers while keeping system and industry costs under control,” said Transat A.T. president and CEO Jean-Marc Eustache. “As long as this remains the fundamental driving force for this regulatory initiative, I am confident that the final result will be positive for all.”
Transat reiterates its support for the proposal in the bill to increase foreign ownership in Canadian airlines from 25 per cent to 49 per cent of voting shares. This not only opens new avenues for growth and venture financing, it will also allow for an expanded traffic rights regime under the Canada-EU air transport agreement that may translate into new and innovative transatlantic air services for consumers.
Finally, Transat takes note of, and cautiously welcomes, the proposal to provide the Minister of Transport with new oversight and authorization powers with respect to inter-airline agreements and joint ventures in the airline sector in order to ensure that they are consistent with the public interest.
Chair and CEO of the Canadian Transportation Agency on introduction of Transportation Modernization Act
“The Canadian Transportation Agency noted with interest the introduction in the House of Commons today of the Transportation Modernization Act,” said Scott Streiner, chair and CEO of the Canadian Transportation Agency. “The proposed changes to the Canada Transportation Act would give the Agency additional tools to help protect air travellers and foster balance and efficiency in the national freight rail system. We will provide Parliamentarians with any information and analysis that would be helpful as they consider the legislation.
“In the meantime, the agency is making preparations to ensure the timely, fair, and effective implementation of updated legislation. This includes plans to consult stakeholders, experts and Canadians in general on the new regulations.”
