No. H109/05
For release May 18, 2005

DESIGNATION OF CANADIAN AIR CARRIERS TO 
OPERATE SERVICES BETWEEN CANADA AND CHINA

OTTAWA — Transport Minister Jean-C. Lapierre today announced the designation of Air Canada and Harmony Airways to operate scheduled air services between Canada and the People’s Republic of China. This designation will allow Air Canada to expand its air service to China and Harmony Airways to introduce passenger flights to China in 2005.

"These designations are evidence that Canada is committed to enhancing air transportation services both for travellers and the business community," said Mr. Lapierre. "With the expanded rights that were obtained by Canada through the new air agreement with China, carriers will have additional flexibility in their operations and can provide more choices to Canadians travelling to and from China."

Air Canada is the only air carrier in Canada that currently operates flights to China. For 2005, the Minister has allocated five additional flights per week to Air Canada to accommodate a new passenger service between Toronto and Beijing beginning in June 2005 and three flights per week for the introduction of an all-cargo service between Toronto and Shanghai, which began May 15, 2005.

Harmony Airways, a Vancouver-based air carrier, intends to introduce passenger services to China in 2005 by operating code-sharing services. Code-sharing is a type of air service whereby an airline sells seats in its name on the flights of another airline.

CargoJet, All Canada Express and Air Transat have also expressed an interest in operating air services to China.

Under the provisions of Canada’s international air transportation policy, all Canadian air carriers may apply to the Minister for designation to operate scheduled international air services. Subsequent allocations of designations will be made annually until 2008, as additional rights are phased in, approximately six months prior to the additional rights becoming available.

The latest air carrier designations to China are made possible by the bilateral air transport agreement between Canada and the People’s Republic of China announced on April 19, 2005. This agreement provides for a three-fold increase in permitted passenger and cargo flights to be operated by more airlines between more city pairs and under more flexible operating conditions than under the previous agreement.

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