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Gateway Transportation Investments
Room to Grow 
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Policy, Taxation & Regulatory Framework
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Air - Policy, Taxation & Regulatory Framework

Capitalizing on opportunities for new business is essential to realize the Gateway Council’s vision. However, the extent to which new services can be developed is generally subject to governmental policies and regulation, which in Canada are less conducive to growth and improvement than in the US. Policies that foster new connections, encourage service improvements and investments in new Gateway facilities and equipment are needed for Gateway airports, seaports and carriers.

International Air Policy

On November 27, 2006, the Government of Canada announced a new international air policy called “Blue Sky.” Under this policy, Canada will seek to negotiate reciprocal “Open Skies” type agreements for international scheduled air transportation with its trading partners. Open Skies agreements include unlimited bilateral market access, no limits on the frequency of service or number of carriers permitted to operate and unrestricted services to and from third-countries (fifth freedom rights).

Airport Security

Security and the facilitation of passenger movements through the airport are critical to its growth plans. Security systems and border measures must be effective and efficient while promoting the easy transfer of passengers and goods through the airport.

Domestic Air Policy

Changes in domestic aviation policy involving the Right of Establishment and limits on foreign ownership of Canadian carriers are necessary to improve competitiveness. The Canadian aviation sector also faces federal taxes and fees which are high relative to other Canadian transportation modes and industry sectors as well as its international competitors.

Action Program

Rapidly Implement the New Blue Sky Policy
and seek to negotiate Open Skies agreements with key Asian markets including Singapore, Taiwan, South Korea, Philippines and Malaysia.

International Transfer/Departure Facilities
must be reinstated to allow the merger of departing International and connecting intransit passenger streams in a secure facility.

Market NEXUS and ongoing CANPASS-AIR automated border inspection programs to increase participation dramatically and facilitate legitimate travel to Canada and the U.S. This would allow border agencies to focus efforts and resources on higher risk travelers.

Transit Without Visa
Expand Transit Without Visa programs to key markets enabling improved access from Asia and Europe through Canada en route to the US.

Reform Tax and Fee structures
to ensure that the air transportation industry is taxed on a level playing field with other Canadian transportation modes and the U.S. aviation sector.

Implement Right of Establishment
that would allow a foreign carrier to establish a Canadian subsidiary for domestic services. This would provide foreign carriers with access beyond the gateway market and would provide added capacity and choice for smaller market areas.

Limits on Foreign Ownership
in Canadian Carriers should be increased from the current level of 25% and so improve access to capital to take advantage of growth opportunities.