REPORT HIGHLIGHTS

TRANSPORTATION AND THE ECONOMY

• In 2003, the growth of the Canadian economy slowed down significantly, growing in real terms by 1.7 per cent.
• Weakened exports outweighed continued strong consumer expenditures and rebounding business investment to contribute to the economic slowdown.
• The severe acute respiratory syndrome (SARS) outbreak, mad cow disease, the power outage in Ontario and the northeastern United States, and the appreciation of the Canadian dollar all contributed to the economic slowdown.
• The continuing rise of the Canadian dollar prevented exporters from taking advantage of the U.S. economic recovery in the second half of the year.
• The growth rate of the services sector (2.2 per cent) surpassed that of the goods sector (1.8 per cent).
• The value of the Canadian dollar in relation to the U.S. dollar rose steeply throughout most of 2003 from a low of US$0.635 to a high of US$0.773 by year-end. Its average value over the year rose 12.1 per cent from 2002.
• The Consumer Price Index increased by 2.8 per cent in 2003. While energy prices rose by 7.9 per cent, transportation prices increased by 5.2 per cent in 2002.
• In real terms, personal disposable income per capita increased by 0.2 per cent in 2003.
• While the population grew by 0.9 per cent, employment increased by 2.3 per cent.
• Saskatchewan and Alberta were the only provinces in 2003 to have lower economic growth than in 2002. Newfoundland and Labrador, on the other hand, again experienced the strongest growth.
• Canada's trade with the United States fell from its $589 billion peak in 2000 to $531 billion in 2003.
• Trucking accounted for 63 per cent of this trade with the United States, rail 17 per cent, pipeline 10 per cent, air six per cent and marine three per cent.
• Almost 78 per cent of the trade (in value terms) between Canada and the United States carried by trucks took place at six border crossing points: Windsor/Ambassador bridge, Fort Erie/Niagara Falls, Sarnia and Lansdowne in Ontario, Lacolle in Quebec, and Pacific Highway in British Columbia.
• In terms of volume, pipelines had the largest share of the trade with 33 per cent; trucking was second with 28 per cent, followed by marine with 20 per cent and rail with 19 per cent.
• In 2003, Canada's trade with countries other than the United States totalled $185 billion, imports being more significant than exports, and marine and air transportation being the two dominant modes for such trade in terms of both value and volume.
• Tourism expenditures, including expenditures on transportation, increased slightly in 2002. Of transportation expenditures related to tourism, air transportation experienced the largest drop. In 2003, domestic travel increased. Overall, international travel to and from Canada was down in 2003, but international travel by Canadians to countries other than the United States increased.
• Pipeline and air transportation each increased domestic energy consumption by 5.2 per cent in 2003. Road transportation energy use increased by 2.2 per cent, while rail and marine transportation energy use declined by 9.3 and 10.2 per cent, respectively.
• Productivity in transportation grew marginally in 2002.
• Commercial transportation services accounted for four per cent of Canada's value-added GDP. In relation to total provincial/territorial GDP, transportation GDP in Prince Edward Island accounted for only 2.2 per cent of the GDP in 2002, while commercial transportation services had the most significant share of provincial GDP in Manitoba with 6.0 per cent. Of commercial transportation activity captured under the GDP, Ontario and Quebec accounted for 58 per cent, while Alberta and British Columbia accounted for 28 per cent.
• Investment in transportation represented 2.8 per cent of GDP in 2002.
• Overall transportation-related final demand accounted for 13 per cent of total expenditures in the economy in 2003.

GOVERNMENT SPENDING ON TRANSPORTATION

• In fiscal year 2002/03, transportation expenditures by all levels of government totalled $19.5 billion, $1.2 billion more than in 2001/02. All levels of government contributed to this increase.
• Government fees and tax revenues from transport users totalled $14 billion, 7.7 per cent more than the previous year, of which 74 per cent came from road fuel taxes.
• In 2003/04, direct federal transport expenses are expected to be $1.9 billion, a 6.1 per cent increase over 2002/03.
• In 2003/04, total direct federal subsidies, grants and contributions are expected to grow to $805 million.
• Provincial, territorial and local governments spent $17 billion on transportation in 2002/03, with roughly 79 per cent going to roads and highways.
• Also in 2002/03, governments spent $14 billion on roads, while public spending on public transit services totalled $2.6 billion. Federal and provincial governments spent $2 billion on air, marine and rail transportation.
• In 2003, two contribution agreements for highway improvements were signed with the provinces of Ontario and Quebec under the Strategic Highway Infrastructure Program. Nineteen projects were announced, for a total federal contribution of $264.4 million, which will enhance the efficiency and safety of the national highway system.
• In 2003, more than 20 transportation (highways and transit) projects were announced nationally by the Ministers of Transport and Infrastructure Canada for a total federal contribution of $2.2 billion under the Canada Strategic Infrastructure Fund and the Border Infrastructure Fund.
• In 2003, a bi-national planning and approval process for a new or improved river crossing between Windsor-Detroit was announced ($1.3 million federal share) under the National System Integration Component of the Strategic Highway Infrastructure Program.
• To enhance southern Ontario's vital international linkages, more than $300 million of the federal border funding will be invested in improvements to Canada's top four border crossings, where 65.2 per cent of our bi-national trade with the United States occurs: Windsor, Niagara, Fort Erie and Sarnia.

TRANSPORTATION SAFETY AND SECURITY

• The number of accidents in each of the transportation modes increased in 2003 (for road, the latest data available are for 2002). Despite these increases, the number of accidents in air, rail and road modes, was below the average number of accidents reported in the previous five years. The number of reportable accidents involving dangerous commodities decreased in 2003. The number of fatalities in marine and in rail was down in 2003.
• Rail-related accidents increased by 4.5 per cent in 2003, while fatalities decreased by 20 per cent. Crossing and trespasser accidents continued to account for the majority of fatal accidents (95 per cent) and accidents involving serious injury (92 per cent) in 2003. Fatalities related to crossing accidents dropped from 46 in 2002 to 27 in 2003, while serious injuries increased from 42 to 50.
• Marine accidents increased in 2003, with 483 Canadian vessel accidents compared with 421 in 2002 and 457.4 for the 1998 - 2002 previous five-year average. This increase was attributed to a growth in both shipping accidents and accidents aboard Canadian ships. A total of 19 fatalities and 30 confirmed vessel losses were reported in 2003. Fishing vessels accounted for 54 per cent of the total reported marine accidents, while commercial vessels accounted for 35 per cent.
• Accidents involving Canadian-registered aircraft increased by eight per cent in 2003, mainly as a result of an increase in private operator accidents. The number of fatal accidents remained almost the same in 2003 as in 2002 (31 and 30, respectively), while there were eight more fatalities. Compared with the 1998 - 2002 five-year average, the number of accidents in 2003 fell by eight per cent and there were fewer fatal accidents and fatalities.
• In 2002, with respect to the road safety record, there was a 3.4 per cent increase in casualty collisions from 2001. There was also an increase in road-related fatalities (from 2,781 to 2,936) and a three per cent increase in road-related injuries.
• Annually, there are approximately 30 million shipments involving dangerous goods. In 2003, almost all these shipments arrived without incident at their destination, with the exception of 358 occurrences. Of this number, only two were caused by the dangerous good itself. The majority of deaths and injuries are caused by the accident (e.g., a collision) rather than contact with the dangerous good.
• During 2003, public confidence in the security of the transportation system continued to increase. Working with government, industry and other stakeholders, Transport Canada introduced new security initiatives in all modes and continued to implement security enhancements announced in 2001.
• In 2003, Transport Canada, in collaboration with the Canadian Air Transport Security Authority (CATSA) and other stakeholders, strengthened Canada's aviation security in a number of areas, including: implementing security regulations and updating the standards for screening passengers and training screeners; developing technical requirements for enhancing the restricted area pass system for airport employees; and, developing tools to measure the performance of advanced explosives detection system equipment.
• Progress was achieved on the adoption and implementation of the International Ship and Port Facility Security Code with the development of guidelines for ship and port facility security assessments and plans, consultations on the development of the regulatory framework, and the development of an oversight, compliance and enforcement program.
• In the area of rail security, a Canada-U.S. Declaration of Principles for security and contraband threats to southbound rail processing was under development in 2003.
• The Canada-U.S. Smart Border Declaration continued to be implemented, focusing on infrastructure improvements, intelligent transportation systems and critical infrastructure protection.
• In 2003, the development of the Chemical Biological Radiological and Nuclear (CBRN) Response Initiative was focused on securing access to trained industrial emergency response teams in the event of a terrorist incident involving dangerous goods.

TRANSPORTATION AND THE ENVIRONMENT

• In 2001, 34 per cent of greenhouse gas (GHG) emissions in Canada came from the transportation sector: 77 per cent from road transportation, nine per cent from aviation, four per cent from rail and six per cent from marine.
• Between 1980 and 2002, on-road gas use remained relatively stable. It was not until 1998 that gasoline use rose to 1980 levels. Since then, gasoline use has continued to climb.
• Between 1980 and 2002, road diesel use grew by 140 per cent, a situation largely explained by the changing nature of the freight transportation industry, including the shift towards a "just-in-time" environment and the economic deregulation of transportation activities.
• Over the same period, aviation GHG emissions grew by 33 per cent.
• From 1980 to 2002, rail emissions dropped by about 15 per cent, despite traffic growth.
• Marine emissions fell by 27 per cent between 1980 and 2002.
• The transportation sector accounts for 52 per cent of total nitrogen oxides (NOx) emissions and 21 per cent of total volatile organic compounds (VOC), the two main ingredients of smog.
• Over the last 15 years, all air pollutant emissions due to transportation have decreased.
• In 2003, Transport Canada developed Sustainable Development Strategy 2004-2006, which defined seven strategic challenges. The Strategy was tabled in Parliament in February 2004.
• In 2002, the Government of Canada ratified the Kyoto Protocol and through Budget 2003 provided $2 billion to be allocated to climate change initiatives in the Climate Change Plan for Canada. One billion dollars of the funding was allocated in 2003, of which $250 million was set aside for transportation measures.
• A number of key transportation measures (initiatives) benefitted from this funding, including motor vehicle fuel efficiency, advanced technology vehicles and alternative fuel options such as fuel cells, ethanol, biodiesel and natural gas. The Freight Efficiency and Technology Initiative also benefitted. It consists of three components: the Freight Sustainability Demonstration Program; voluntary agreements between the federal government and modal associations; and training and awareness for freight carriers. Transport Canada and Natural Resources Canada also co-led a new Commercial Transportation Energy Efficiency and Fuels Initiative.
• In 2003, eight of the 15 city proposals developed and evaluated under the Urban Transportation Showcase Program, a $40 million initiative aimed at demonstrating and evaluating the impacts of integrated strategies to reduce GHG emissions from urban transportation, were selected for implementation.
• The $3 billion infrastructure investment announced in the 2003 federal budget was identified as a further source of effort to reduce GHGs.
• In 2003, the On-Road Vehicle and Engine Emission Regulations under the Canadian Environmental Protection Act, 1999 and the final Off-Road Small Spark-Ignition Engine Emission Regulations were published.
• The 2003 federal budget provided $475 million over five years to accelerate the clean-up of federal contaminated sites in Canada.
• In 2003, a number of initiatives were conducted in provinces and/or municipalities to improve the sustainability of the transportation system: the testing of a canola-oil blend "biodiesel" in a portion of the Saskatoon Transit Service and Saskatchewan Highways fleet; a grant for the design, development and testing of biodiesel fuels for Manitoba transit buses in Canadian prairie conditions; a grant to assess the implementation of alternative fuels in fleet vehicles within Manitoba's Red River Valley Region; a tax rebate program in Ontario for vehicles powered by alternative fuel; a ten-year plan to expand and review Ontario's transit infrastructure; the completion of a pilot test of using 20 per cent biodiesel blend fuels in the Société de Transport de Montréal transit buses; and the New Brunswick release of a Strategy Plan with "environmentally responsible and proactive" as one of its nine key strategic objectives.

RAIL TRANSPORTATION

• No track was discontinued in 2003 and only a small amount of track was transferred.
• Track and facilities in Quebec owned by Canadian American and Quebec Southern Railway were transferred to the Montreal, Maine & Atlantic Railway. Canadian National (CN) transferred track in Saskatchewan to a railway called Prairie Alliance for the Future.
• Of total rail revenues in 2002, 88.5 per cent were generated by CN, Canadian Pacific Railway (CPR) and VIA Rail.
• Class I railways consumed 1.8 billion litres of fuel in 2002, compared with 1.9 in 1990.
• CN reported a 2.0 per cent increase in tonne-kilometres moved in 2002 over 2001, while CPR's output declined by 3.3 per cent.
• In 2003, rail car loadings decreased slightly to 259.8 million tonnes. In Western Canada, there was a two per cent drop, while Eastern Canada increased by one per cent.
• Shipments of coal and coke dropped 14 per cent in 2003, chemicals four per cent to 14.4 million tonnes, iron ore 14 per cent to 31.7 million tonnes and forest products four per cent to 42.6 million tonnes. Meanwhile, 2003 shipments of grain, total forest products, fertilizer materials and automotive products increased.
• Export rail tonnage increased 6.4 per cent in 2003 to reach 69.9 million tonnes, with forest products, chemicals and fertilizer materials being the largest contributors to such traffic. The largest share of rail export volume to the United States originated in Ontario (28 per cent).
• In 2003, there was a slight increase in import rail tonnage to 20.5 million tonnes. Chemicals, agricultural and food products, grains and metals accounted for 59 per cent of total import volume. Automotive imports remained the top commodity. Ontario was the leader in terms of rail import volumes, accounting for 53 per cent of the total.
• Fort Frances and Sarnia, both in Ontario, accounted for 19.7 and 16.8 per cent of rail exported trade, respectively, with forest products, fertilizer materials and chemicals the major commodities exported at these border crossings. In value terms, the leading border crossing points were Sarnia and Windsor, with automotive products topping the commodities exported through these locations.
• Class I railways moved 82 million tonnes of goods to and from Canadian ports in 2002, 11 per cent less than in 2001.
• British Columbia, Alberta and Saskatchewan remained the main originating source of rail-marine exports in 2002 despite declines over the previous year. Coal and grain exports both declined, but fertilizer exports increased. Rail-marine imports increased slightly in 2002, and Quebec and Ontario remained the two major destinations for such traffic.
• Intercity rail passenger traffic increased by 1.7 per cent in 2002. VIA Rail reported a slightly greater increase of three per cent.
• The productivity of rail freight carriers increased by 2.4 per cent in 2002.
• VIA Rail's productivity declined by 1.2 per cent in 2002.

ROAD TRANSPORTATION

• In 2003, the Motor Vehicle Transport Act (MVTA) was amended.
• Revisions to federal regulations on the hours of service rules for commercial vehicle drivers (bus and truck) and Motor Carrier Safety Fitness Certificate Regulations were published in 2003 in the Canada Gazette Part I.
• In 2003, British Columbia was the only jurisdiction to report administrative changes to existing bus regulations.
• The U.S. government introduced new border security measures in 2003 for the prior notification requirements on food shipments, and also announced the timeframe for advanced notification requirements for all cargo shipments.
• Heavy trucks and cars crossing the Canada-U.S. border decreased again in 2003.
• TransForce Income Fund topped the list of for-hire trucking companies in Canada for total number of vehicles (tractors/trailers) in their fleet.
• Trucking firms carrying general freight accounted for 62 per cent of total revenues of large for-hire trucking firms in 2002, while the share of specialized trucking firms decreased marginally.
• According to the 2002 Canadian Vehicle Survey, there are 17.3 million (in scope) light vehicles (i.e. gross weight less than 4,500 kilograms) in Canada, including 10.4 million passenger cars and station wagons, 2.5 million vehicles listed as vans, three million pickup trucks and 1.3 million sport-utility vehicles (SUVs).
• Vans, SUVs and light trucks accounted for 42 per cent of vehicle-kilometres in 2002. They were driven on average more than cars and station wagons (18,100 kilometres versus 15,800 kilometres) and had a marginally higher vehicle occupancy ratio (1.65 persons).
• There was an average of 550 vehicles per 1,000 people in Canada in 2002.
• According to the Canadian Vehicle Survey, there were 580,000 (in scope) heavy trucks (gross weight of at least 4,500 kilograms) in Canada, of which 315,000 were medium-sized weighing between 4,500 and 15,000 kilograms. Almost 268,000 were Class 8 (heavy) trucks weighing more than 15,000 kilograms.
• Ontario (38 per cent), Alberta (24 per cent) and Quebec (13 per cent) accounted for 75 per cent of the heavy truck fleet.
• Heavy trucks accounted for 18 billion vehicle-kilometres in 2002, compared with fewer than 5.5 billion for medium-sized trucks.
• Empty haul movements accounted for 16 per cent of heavy truck vehicle-kilometres, compared with about eight per cent for medium-sized trucks in 2002.
• In 2002, domestic and transborder for-hire truck traffic by Canadian firms generated revenues of $8.3 billion and $7.3 billion, respectively, with six groups of commodities accounting for 81 per cent of these revenues: manufactured products, food products, forest products, metal and steel products, automobile/ transport products and plastic/chemical products.
• Ontario dominated with 36 per cent of intraprovincial trucking traffic, 33 per cent of interprovincial trucking traffic and 44 per cent of total transborder traffic hauled by trucks. The heaviest traffic flows were between Ontario and the U.S. central region and Ontario and the U.S. southern region, with 18.4 billion tonne-kilometres and 11.4 billion tonne-kilometres, respectively.
• Total factor productivity in the trucking industry fell by 1.8 per cent in 2002.
• Because prices increased on average more than unit costs, the industry's average operating ratio improved in 2002.
• The revenues of urban transit operators increased by seven per cent in 2002. Prices increased by 2.9 per cent and output grew by 2.5 per cent.
• Productivity declined by 3.7 per cent and transit costs per unit of output increased by 4.5 per cent in 2002.

MARINE TRANSPORTATION

• Canada brought into force in 2003 new limits per oil spill incidents from tankers as part of the International Convention on Civil Liability for Bunker Oil Pollution Damage and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage agreed to by the International Maritime Organization.
• In 2003, the International Maritime Organization adopted a Protocol establishing a Supplementary Fund that provides a third layer of compensation for claimants of oil pollution damages.
• The report reviewing the Canada Marine Act was released in 2003.
• By year-end, 99 regional/local and remote ports and port facilities remained under Transport Canada's control.
• Total operating revenues of Canada Port Authorities (CPA), which are financially self-sufficient ports critical to domestic and international trade, reached $279 million in 2002, up $13 million from 2001, compared with a decrease of $6.7 million in expenditures. Vancouver and Sept-Îles reported the largest increases in revenues. Net income of CPA ports decreased by $3.7 million in 2002.
• Tonnage handled at CPA ports dropped from 219.9 million tonnes in 2001 to 215.1 million tonnes in 2002. Vancouver (29 per cent), Saint John (12 per cent), Sept-Îles (nine per cent), Montreal (nine per cent) and Quebec City (eight per cent) combined accounted for 67 per cent of total cargo handled by CPAs.
• In 2002, CPAs handled 52.7 per cent of total port traffic.
• At the end of 2003, of the total number of fishing harbours, 670 were managed by harbour authorities and 353 were small craft harbours managed by Fisheries and Oceans Canada.
• In 2003, of the four pilotage authorities, only the Great Lakes Pilotage Authority generated a net loss.
• The Canadian Coast Guard is developing an Automatic Identification System that will allow it to improve the surveillance of vessels with "near real-time" identification and tracking of vessels approaching and operating in Canadian waters.
• The two main sections of the St. Lawrence Seaway - the Montreal-Lake Ontario section and the Welland Canal section - attracted an estimated 40.87 million tonnes of traffic in the 2003 season, 1.3 per cent less than in 2002.
• Ferry services carried approximately 39 million passengers and 15.4 million vehicles in 2003.
• International cruise ship traffic in 2003 decreased for the first time in 21 years. It also decreased at the ports of Montreal, Quebec City and Saint John, but increased at Halifax.
• Domestic cargo loaded and unloaded at Canadian ports increased to 62.6 million tonnes in 2002, a 1.35 per cent increase from 2001.
• A total of 282.7 million tonnes of international cargo was handled at Canadian ports, compared with 286.9 million tonnes in 2001. Of that total, 114.3 million tonnes were related to Canada's marine traffic to and from the United States, up slightly from 2001, while 168.4 million tonnes had to do with Canada's marine trade with overseas countries (excluding the United States).
• The value of Canadian international marine trade in 2002 was $103.2 billion, excluding shipments via U.S. ports.

AIR TRANSPORTATION

• Air Canada filed for court protection under the Companies' Creditors Arrangement Act (CCAA) on April 1, 2003, and Air Canada's Board of Directors accepted new equity of $650 million from Trinity Investments to support its emergence from CCAA protection.
• In March 2003, the World Health Organization issued a worldwide advisory for countries like Canada with confirmed cases of severe acute respiratory syndrome (SARS). Six special health screening measures were put in place at six Canadian airports: Toronto, Vancouver, Ottawa, Calgary, Dorval (Trudeau) and Mirabel.
• The Air Travel Complaints Commissioner issued two reports in 2003 covering the year 2002. Although the number of complaints continued to decline, industry difficulties, declining revenues and rising costs led to settlements requiring difficult negotiations to reach acceptable solutions.
• A comprehensive review of the federal government rent policy for leased airports in the National Airports System (NAS) was conducted with the assistance of independent financial experts and independently of the development of a proposed Canada Airports Act.
• In 2003, a review of the space occupied by federal departments and agencies at key NAS airports was launched.
• A study was started to look at the financial viability of regional and small airports transferred since the introduction of the National Airports Policy.
• Amendments to regulations of the computer reservation systems were proposed on October 25, 2003, and published in the Canada Gazette.
• The Air Travellers Security Charge, introduced to fund the costs of the enhanced air travel security system put in place in response to the September 11, 2001, terrorist attacks, was reduced on March 1, 2003, for air travel within Canada from $24 to $14 for round-trip travel.
• The national implementation of the Electronic Collection and Dissemination of Air Transportation Statistics initiative began on April 1, 2003, to permit the electronic collection of all operational air transportation statistics from approximately 170 domestic, U.S. and other international air carriers serving airports in Canada.
• Since September 22, 2001, when international insurers withdrew their previous level of coverage, the federal government has been providing short-term indemnification for third-party war and terrorism liabilities, renewable for periods of 90 days.
• A new Canada-U.S. Air Transport Preclearance Agreement was brought into force on May 2, 2003, formalizing in-transit preclearance at Vancouver airport and allowing for its introduction at Calgary, Montreal and Toronto airports.
• Several new designations were announced by the Minister of Transport in 2003 as part of the new multiple designation policy allowing all carriers to operate scheduled international air services to any air market, regardless of size: Air Canada (Cuba), Air Transat (Dominican Republic and Mexico), HMY Airways (Mexico), Skyservice Airlines (Dominican Republic and the United Kingdom) and Zoom Airlines (Dominican Republic, Mexico and the United Kingdom).
• Canada participated in negotiations or consultations in relation to international air services with seven countries in 2003: Vietnam, France, Russia, Luxembourg, Israel, Singapore and Chile.
• In 2003, the Airports Capital Assistance Program funded 43 projects at 31 airports related to safety, asset protection and operating cost reduction.
• Despite the decline in passenger traffic in 2002, total revenues of the nine largest NAS airports increased by six per cent.
• Air Canada, with its subsidiaries, remained Canada's largest airline in 2003, with $8.2 billion in revenues between October 1, 2002, and September 30, 2003, and serving 62 points in Canada, 49 in the United States and 43 international destinations in 30 countries. It has three wholly owned subsidiaries: Air Canada Jazz, Zip Air and Air Canada Vacations. It offers premium charter services to sport teams and businesses under Jetz. Four independent local service operators offered regional services on behalf of Air Canada: Air Creebec, Air Georgian, Air Labrador and Central Mountain Air.
• Low-cost, no-frills carriers offering domestic and transborder services in 2003 included WestJet, CanJet and Jetsgo.
• Canadian charter airlines providing services both domestically and internationally in 2003 included Air Transat, Skyservice Airlines, HMY Airways and Zoom Airlines.
• Airlines providing year-round scheduled and charter services across northern Canada included First Air, Canadian North and Air North. Aklak Air, Kenn Borek Air and North-Wright Airways complement the other airlines by offering flights to the most remote communities in the Arctic.
• Twelve U.S. airlines served 18 Canadian cities, and 36 foreign airlines provided services from Canada to 47 international destinations in 34 countries.
• A number of all-cargo airlines provided jet services in 2003 on behalf of Canada Post, courier companies, freight forwarders, consolidators and shippers: All- Canada Express, Cargojet Canada, Kelowna Flightcraft and Morningstar Air Express.
• At the end of 2003, more than 2,300 airline licences were active, an indicator of the wide number of airlines operating in Canada.
• The business segment of air activity continued to grow in 2003, mainly as a result of fractional ownership.
• In 2002, the total revenues generated by the air transport industry dropped by 3.5 per cent for the second consecutive year.
• Productivity stayed the same in 2002 and factor prices increased by 2.8 per cent. WestJet and Air Transat reported increased profits.
• Canada's air trade with countries other than the United States stayed essentially the same in 2003 as in 2002, with a surge in exports being offset by a decrease in imports. Since the year 2000, the air cargo trade between Canada and the United States has been declining, a drop which has been more significant on the import side.
• In 2002, the number of tonnes carried by Canadian air carriers remained basically the same as in 2001, with five per cent growth in international markets and an 11 per cent decrease in air cargo to the United States.
• Air passenger traffic fell by two per cent in 2003 to 54 million passengers. Transborder traffic was the most affected market with a four per cent decrease.