9 AIR TRANSPORTATION

FREIGHT TRANSPORTATION

There are no restrictions on routing, capacity or price in Canada’s domestic air cargo market. However, Canada–U.S. transborder and other international air cargo services are governed by Canada’s international (bilateral) air transportation agreements, other international agreements and national policies.

A number of Canadian air carriers provided dedicated all-cargo air services, notably Cargojet Canada of Mississauga, Kelowna Flightcraft of British Columbia, and Morningstar Air Express of Edmonton, which have a combined fleet of 30 aircraft. In addition, Air Canada provided air cargo service as part of its scheduled passenger air services. Cargo revenues accounted for six per cent of Air Canada’s revenues in the first three quarters of 2006. In the North, Canadian North and First Air also provided air cargo services, along with numerous other smaller air carriers.

The volume of goods carried by Canadian air carriers from 1993 to 2005 is illustrated in Table A9-11 in the Addendum. Overall, the number of tonnes carried in 2005 decreased by 0.7 per cent from 2004. Operating revenues generated by goods carried by Canadian air carriers are illustrated in Table A9-12 in the Addendum. Between 2003 and 2004, domestic revenues increased by 3.1 per cent, while international and transborder revenues (combined) increased by 5.1 per cent.

The value of goods shipped by air versus other modes is compared in Table A9-13 in the Addendum. The value of air cargo trade between Canada and the United States in 2006 decreased to $30.5 billion, or 5.5 per cent from 2005. This was more pronounced for exports than for imports. Air cargo’s share of total Canada–U.S. trade was 5.3 per cent in 2006.

Table A9-13 in the Addendum also shows that Canada’s air trade with countries other than the United States increased by 11.8 per cent in 2006 over 2005. This result can be explained by the surge in exports and imports, which increased by 5.2 and 9.6 per cent, respectively. The air transport mode’s share of the total value of trade with other countries was 23.2 per cent in 2006.

The United States, followed by countries in western Europe and in Asia, were the main markets for air transport trade with Canada. High value items such as machinery and electrical equipment, aircraft and transport equipment, and other manufactured goods made up the majority of the goods shipped by air. For a regional breakdown of imports and exports, see Table A9-14 in the Addendum. Table A9-15 shows the value of imports and exports shipped by air and by country for the top 25 countries. Table A9-16 breaks out the commodity groups for goods shipped by air.

Major Events in 2006

Infrastructure

Industry Structure

Price, Productivity and Financial Performance

Freight Transportation

Passenger Transportation