Canada and Chile signed a new air agreement. The media release follows:
For release September 5, 2001
AGREEMENT BRINGS NEW OPPORTUNITIES
IN CANADA-CHILE AIR TRANSPORTATION
OTTAWA - Transport Minister David Collenette and Foreign Affairs Minister John Manley today announced the successful negotiation of amendments to the Canada-Chile Air Transport Agreement. The modifications substantially liberalize and modernize the framework governing air services between the two countries.
"The new arrangements are consistent with Canada's practice of progressively liberalizing air services agreements and should lead to the re-introduction of direct air services to Chile," said Mr. Collenette. "This will be of benefit both to travellers and to shippers."
The amendments will permit Canadian and Chilean airlines to operate scheduled international services to any city in the other country without restrictions on frequency of service or ticket price. To assist the development of air services between Canada and Chile, designated airlines have been given limited additional rights to offer transportation from cities in a third country and flexible code-sharing provisions to offer services in conjunction with partner airlines.
"The expansion of the Canada-Chile Air Transport Agreement is an important step forward in forging new ties between our two countries," said Mr. Manley. "This new agreement will augment and support the Canada-Chile Free Trade Agreement and allow for the creation of greater economic, political and social links."
Canada's designated airline, Air Canada, plans to initially introduce code-sharing services to Chile via the U.S. and Brazil on the flights of its partner airlines. Chile's designated airline, Lan Chile, has not yet announced its operating plans.