cair issue no. 54 - july 2007

In this issue… Features Columns: Regular Reports: • New Zealand Outbound Travel

Market (p.1) • Changes in Fuel Efficiency of

Canadian Carriers (p.3) • Paris Air Show: Summary of

Aircraft Orders (p.5) • Cargo Capers (p.13) • Transforming Borders: From a

“Perimeter” to a “Coordinated Clearance Strategy” (p.15)

• Airline Data - Canada (p.7) • Airline Data – U.S. (p.8) • Selected Canadian Airport Data (p.9) • Industry News (p.10) • The Asia Report (p.17) • The European Report (p.18) • The Ottawa Report (p.19) • The Washington Report (p.21) • InterVISTAS News (p.22)

CANADIAN AVIATION INDUSTRY REVIEW

InterVISTAS’ Canadian Aviation Intelligence Report July 2007 Copyright ©2007 InterVISTAS Consulting Inc., all rights reserved. Page 1

Angelica Sparolin Senior Research Specialist,

Economics and Transportation

NEW ZEALAND OUTBOUND TRAVEL MARKET July 2007

In February 2007, Air New Zealand announced that it will be launching direct non-stop service between Auckland and Vancouver three times a week between November 2007 to March 2008. In response to the strong customer demand, the airline recently announced that it will be extending the service to a year-round basis, with three flights a week during the months of November through March and July through August and two flights a week in the remaining months. In light of these announcements, this article explores the characteristics of the outbound New Zealand travel market.

1.9 Million Outbound Visitors from New Zealand in 2006 Outbound travel from New Zealand has been increasing steadily over the past 25 years, nearly quadrupling from less than half a million visitors in the 1980’s to nearly 1.9 million visitors presently.

Figure 1: Total Outbound Travel from New Zealand (1981-2006)

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Source: New Zealand Ministry of Tourism.

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Source: New Zealand Ministry of Tourism.

Australia, Fiji, the UK and the US are the Top Outbound Markets Oceania captured the largest proportion of outbound New Zealand travel in 2006 at 62%, followed by Asia (13%), Europe (9%) and the Americas (6%). Top individual destinations include Australia with close to 930,000 visits, followed by Fiji with over 100,000 visits, and both the UK and US, each with close to 90,000 visits. Canada currently captures a relatively small share of outbound New Zealand travel (2%), with 39,200 customs entries by New Zealand residents in 2006, a decrease of 3.3% from 40,500 visitors in 2005, but up from 37,500 visitors in 2004. Source: Statistics New Zealand.

Europe9%

Americas6%

Other10%

Asia13%

Oceania62%

Figure 2: Top Outbound World Regions

Source: Statistics New Zealand.

Europe9%

Americas6%

Other10%

Asia13%

Oceania62%


Europe9%

Americas6%

Other10%

Asia13%

Oceania62%

Figure 2: Top Outbound World Regions


NEW ZEALAND OUTBOUND TRAVEL MARKET – CON’T Close to Three-Quarters of Outbound Travel is for Leisure Purposes The vast majority of outbound travel from New Zealand is for leisure purposes (73%), comprised of 42% on vacation and 31% visiting friends and relatives. Business travel captures a significantly smaller portion at 15%.

The Outbound New Zealand Traveller is a Long Stay Traveller with an Average Trip Length of 20 Days The average overall trip length is approximately 20 days, but there is significant variation by world region. Trips to Oceania are typically shorter in length at 12 days, while trips to other destinations are significantly longer at 30 days for the Americas, 33 days for Asia and 42 days for Europe.

Outbound New Zealand Travel Peaks during the 3rd and 4th Quarters Outbound travel from New Zealand varies significantly by season. Peaks are observed in the third and fourth quarters, coinciding with the southern hemisphere summer. Travel during the first quarter, in contrast, is significantly lower, with approximately half the volume of the peak third quarter.

Figure 4: Seasonality of Outbound Travel from New Zealand (2003-2006)

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Outbound New Zealand Travel Is Expected to Grow to Over 2 Million by 2012 The New Zealand Ministry of Tourism expects outbound travel from New Zealand to continue to grow modestly in the short term at between 1.2% and 1.5% per annum, reaching just over 2 million visitors by 2012.


Business15%

Other12%

Visit friends/ relatives

31%

Holiday/ vacation

42%

Figure 3: Trip Purpose New Zealand Outbound Travel


Business15%

Other12%


31%

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42%


Business15%

Other12%


31%

Holiday/ vacation

42%

Figure 3: Trip Purpose New Zealand Outbound Travel


Kahlil Philander Senior Analyst

Figure 1: Canadian Carrier Fuel Use and Revenue Passenger Kilometres*

CHANGES IN FUEL EFFICIENCY OF CANADIAN CARRIERS July 2007

Canadian Airlines have been under Financial Pressure to Improve Fuel Efficiency Motivated by high fuel prices that have emerged since the end of 2002, airlines have sought to increase fuel efficiency. In December 2002, Canadian air carriers consumed 5.3 litres of turbo jet fuel per 100 passenger kilometres (PK). By December 2006, efficiency gains contributed to a 13% decrease in consumption, to 4.6 litres per 100 PK. Total consumption of fuel did increase by 25% during this period, but passenger kilometres increased by nearly double this rate (45%).1 Figure 1 illustrates the movement of jet fuel consumption and RPK from 2002 to 2006.

New Technology, Reduced Weight, and Higher Load Factors all Contributed to Fuel Efficiency Efforts to improve fuel use have been extensive. Air Canada and WestJet have upgraded their fleet to include more fuel efficient aircraft. Since 2002, Air Canada has added Embraer 170 and 190, CRJ-700, Airbus A340-500, and Boeing 777 aircraft to its fleet. WestJet has completely upgraded their Boeing 737 fleet to more fuel efficient ‘Next Generation’ models designed with features such as winglets to improve fuel use (See “Changing Fleet Size of Air Canada and WestJet” in the December 2006 CAIR for further fleet analysis). Both airlines have also implemented new policies to reduce aircraft weight, such as increased baggage restrictions and fewer on board amenities.

1 Statistics Canada: Cansim Table 401-0001, “Operating and Financial Statistics of Major Canadian Airlines”

Canadian Airline Fuel Efficiency Improvement (Litres per 100 Passenger km)

2002: 5.5 2006: 4.6

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Source: Statistics Canada, January 2002 to December 2006 data

Dec-06


CHANGES IN FUEL EFFICIENCY OF CANADIAN CARRIERS – CON’T Improved load factors have additionally contributed to efficiency gains. Air Canada increased their load factor from 74.3% in 2002 to 80.2% in 2006; WestJet increased their load factor from 73.2% to 78.2% in the same period.

Energy Prices have caused Fuel Expenses to Continue to Increase Despite the concerted effort to increase efficiency, the high price of jet fuel has caused Canadian air carriers’ fuel expense to increase, both in overall level and as a portion of total expenses. In the period from December 2002 to December 2006, the price of jet fuel increased 134% from 80 cents US per gallon to 187 cents US per gallon (see “Fuel Price Update” in the April 2007 CAIR for further fuel price analysis).2 In 2002, fuel expenses were 13% of WestJet and Air Canada’s operating expenses, totalling $1.4 billion; by 2006, fuel was 26% of the two air carriers’ operating expenses, totalling $3.0 billion. Figure 3 illustrates the fuel expenses of the combined carriers in 2002 and 2006.

A Good Record Canada’s air carriers have improved their fuel efficiency by over 13% in four years. This is roughly a 3% annual improvement. A record of 4.6 litres per 100 kilometres compares very favourably with that of automobiles, even after adjusting for average auto occupancy rates.

2 Source: US Energy Information, Rotterdam Kerosene-Type Jet Fuel Administration

Figure 3: Combined Air Canada and WestJet Expenses 2006

Fuel Expenses

26%

Other Expenses

74%

$ 8.4 Billion

$ 3.0 Billion

2002 Fuel Expenses

13%

Other Expenses

87%

$ 9.2 Billion

$ 1.4 Billion

Source: Air Canada and WestJet Annual Reports

Total = $10.6 Billion Total = $11.4 Billion


Connie Chang Project Analyst

PARIS AIR SHOW: SUMMARY OF AIRCRAFT ORDERS July 2007

The 47th International Paris Air Show, held in Le Bourget, Paris, on 18-24 June 2007, reported a total of 810 aircraft order announcements. Airbus captured the majority of these orders, with 744 aircraft orders from 25 customers. On the other hand, Boeing acquired 66 aircraft orders from two customers and Embraer acquired 20 aircraft orders from one customer. It is notable that although the A320 was the best seller at the Paris Air Show, the previously slow-selling A330 managed to retain a significant 129 orders. Details on the announced orders are shown as follows:

AIRPLANE MODEL ORDER QUANTITY BUYER Airbus A320 60 GE Commercial Aviation Services (Firm) 60 US Airways (Firm) 30 Jazeera Airways (Firm) 30 Tiger Airways (MOU) 30 Hong Kong Airlines (MOU) 25 Mandala Airlines 25 CIT Aerospace (Firm) 25 S7 Group 20 Kingfisher Airlines (MOU) 20 National Air Services (Firm) 18 National Air Services (Purchase Rights) 18 Air France (MOU) 14 Avianca (Firm) 7 Aviation Lease and Finance Co. 7 Libyan Airlines (MOU) 5 Ural Airlines (MOU) 5 Afriqiyah Airways (Firm) 2 Nouvelair A321s 5 Aeroflot

A320s Sub-total 406 A330s 20 Hong Kong Airlines (MOU) A330s 15 Fly Asian Express A330-200s 10 US Airways (Firm) A330-200s 10 Kingfisher Airlines (MOU) A330-200s 5 Avianca (Firm) A330-200s 5 Etihad Airways (Firm) A330-200s 4 Libyan Airlines (MOU) A330-200Fs 20 Intrepid Aviation Group (Firm) A330-200Fs 15 Aircastle Limited A330-200Fs 12 Flyington Freighters A330-200Fs 3 Etihad Airways (Firm) A330-200Fs 2 MNG Airlines (Firm) A330-300s 8 Thai Airways (Firm)

A330s Sub-total 129


PARIS AIR SHOW: SUMMARY OF AIRCRAFT ORDERS – CON’T

AIRPLANE MODEL ORDER QUANTITY BUYER Airbus – Con’t A340-500s 5 Kingfisher Airlines (MOU) A340-600s 4 Etihad Airways (Firm)

A340s Sub-total 9 A350s 4 Libyan Airlines (MOU) A350 XWBs 22 Aeroflot (Firm) A350 XWBs 12 Aviation Lease and Finance Co. (Firm) A350 XWBs 7 CIT Aerospace (Firm) A350 XWBs 6 Afriqiyah Airways (MOU) A350-800 XWBs 22 US Airways (Firm) A350-800 XWBs 20 Qatar Airways A350-800 XWBs 15 Kingfisher Airlines (MOU) A350-900 XWBs 40 Qatar Airways A350-900 XWBs 20 Singapore Airlines (Firm) A350-1000 XWBs 20 Qatar Airways

A350s Sub-total 188 A380s 8 Emirates Airline (LOI) A380s 2 Air France (MOU)

A380s Sub-total 10 Airbus Corporate Jet 1 Hong Kong Airlines (MOU)

Airbus Corporate Jetliner 1 BAA Jet Management AIRBUS TOTAL 744

Boeing Next Generation 737s 10 International Lease Finance Corp. 777 Freighters 6 GE Commercial Aviation Services 787 Dreamliners 50 International Lease Finance Corp.

BOEING TOTAL 66 Embraer

Embraer 195 Jet 20 BRA Transportes Aėreos (Firm) EMBRAER TOTAL 20

Note: MOU = Memorandum of Understanding; LOI = Letter of Intent


AIRLINE DATA – CANADA Traffic and Load Factors on Canada’s Major Air Carriers June 2007

Passenger Traffic Revenue Passenger

Kilometres Capacity

Available Seat Kilometres Load Factor Air Carrier

% Change over 2006

% Change from 2005

% Change over 2006

% Change from 2005

Change over 2006

Change from 2005

Air Canada1 +1.1% +3.1% +1.1% +0.4% +0.0pts (to 83.4%)

+2.1pts (from 81.3%)

Domestic (Mainline) +1.5% -3.9% -0.1% -3.1% +1.3pts -0.6pts

Jazz +13.1% +77.1% +9.0% +73.7% +2.8pts +1.5pts International & Charter +1.0% +6.2% +1.7% +2.0% -0.6pts +3.3pts

WestJet +21.4% +52.8% +17.0% +40.4% +2.8pts (to 79.9%)

+6.4pts (from 73.5%)

Analysis: • Air Canada mainline’s domestic load factor

increased by 1.3% over June 2006, reaching 80.6 percentage points in June 2007. This is due to a combination of the 0.1% decline in domestic seat capacity and the 1.5% growth in passenger traffic over the previous year.

• Air Canada’s international traffic and seat capacity increased by 1.0% and 1.7% respectively in June 2007 over June 2006, with Latin America and other destinations contributing the most to its growth. Overall, June’s load factor was down 0.6 percentage points over 2006.

• WestJet’s load factor increased by 2.8 percentage points, resulting in the all-time high June load factor of 79.9%. This is due to passenger traffic growth by 21.4% outpacing seat capacity expansion by 17.0% over June 2006.

• While WestJet recorded six months of load factor growth, Air Canada’s load factor continues to be higher than WestJet.

1 Air Canada Mainline consists of all Air Canada operations with the exception of Jazz.

0%5%

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WestJetWestJet

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Air Canada Domestic Mainline Air Canada Domestic Mainline

Jazz data is not included in this graph

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Air Canada Domestic Mainline Air Canada Domestic Mainline

Jazz data is not included in this graph

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Air Canada InternationalAir Canada International

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Air Canada InternationalAir Canada International


AIRLINE DATA – U.S. U.S. Airlines Release June 2007 Traffic Figures

Airline Traffic (RPMs – millions)

Capacity (ASMs – millions) Load Factor

2,251 ↑12.7%

2,688 ↑10.4%

83.8% ↑1.7 pts

806

↓2.4% 1,003 ↓2.2%

80.3% ↓0.2 pts

6,828 ↑11.0%

8,319 ↑8.7%

82.1% ↑1.7 pts

1 8,633 ↑5.0%

10,068 ↑3.4%

85.7% ↑1.2 pts

2 10,726 ↓0.3%

12,033 ↓1.2%

89.1% ↑0.8 pts

12,223 ↓3.5%

14,024 ↓5.4%

87.1% ↑1.7 pts

11,672 ↑5.0%

13,587 ↑3.3%

85.9% ↑1.4 pts

6,956 ↓0.7%

7,901 ↑0.3%

88.0% ↓1.0 pts

2 5,894 ↑0.4%

6,907 ↓1.4%

85.3% ↑1.6 pts

463

↑19.6% 489

↑13.4% 94.7% ↑5.0 pts

1,633 ↑26.0%

1,970 ↑21.3%

82.9% ↑3.1 pts

936

↑15.2% 1,076 ↑12.7%

87.0% N/A

Notes: 1. Mainline operations only. 2. Load factor includes scheduled service only. Sources: Carrier traffic reports.

InterVISTAS’ Canadian Aviation Intelligence Report July 2007 Copyright ©2007 InterVISTAS Consulting Inc., all rights reserved.

Page 9

Summary of Total Year-over-Year Passenger Traffic Performance at Selected Canadian Airports

Toronto Vancouver Montréal-Trudeau Calgary Edmonton Ottawa Winnipeg Halifax Victoria Kelowna Saskatoon Regina St.

John’s May +4.8% +2.7% +8.3% +16.0% +20.6% +0.3% +6.4% +8.4% +10.3% +13.2% +7.7% +23.3% +15.1% June +2.9% +2.6% +4.5% +9.5% +13.2% +1.8% +4.1% +0.7% +8.6% +13.4% +5.3% +12.5% +3.9%

2nd Quarter +4.6% +3.2% +6.4% +14.8% +18.1% +1.9% +3.8% +5.2% +7.8% +14.7% +7.4% +16.3% +10.3% July +2.2% +4.8% +1.9% +7.4% +13.8% -2.1% +4.9% +8.5% +7.4% +14.4% +5.9% +7.1% +13.2%

August +6.8% +3.9% +3.5% +10.2% +18.2% +2.2% +8.5% +7.1% +11.3% +12.2% +5.8% +15.9% +11.7% September +2.2% +2.1% +2.6% +10.0% +13.1% 0.0% +8.8% +4.9% +6.9% +16.6% +6.9% +10.4% -0.5% 3rd Quarter +3.8% +3.7% +2.7% +9.2% +15.1% +0.1% +7.3% +6.9% +8.6% +14.3% +6.2% +11.1% +8.7%

October +2.6% +2.3% +3.9% +9.9% +18.4% +2.3% +7.7% +6.2% +8.9% +13.7% +7.1% +6.2% +1.7% November +3.9% +3.7% +8.6% +14.1% +15.4% +3.0% +8.3% +0.6% +2.7% +14.5% +2.7% +3.7% +0.2% December +6.4% +6.2% +8.7% +11.4 +18.2% +3.8% +3.4% -2.4% -0.1% +14.5% +3.7% +10.2% -1.1% 4th Quarter +4.3% +4.1% +7.0% +11.7 +17.4% +3.0% +6.4% +1.7% +3.9% +14.3% +4.5% +6.7% +0.3%

2006

Full Year +3.5% +3.1% +4.7% +11.1 +15.5% +1.7% +4.8% +4.6% +5.4% +14.7% +5.6% +8.0% +6.0% January +3.0% +5.5% +10.2% +10.8% +18.3% +5.9% +3.2% +2.3% +4.7% +15.2% +6.6% +18.8% -4.6% February +2.0% +2.7% +7.0% +10.4% +18.3% +8.3% +6.8% +2.0% +4.0% +12.9% +10.9% +24.2% +0.0%

March +1.5% +3.6% +8.9% +9.5% +17.1% +4.9% +5.4% -1.2% +7.9% +15.6% +5.7% +8.2% -1.1% 1st Quarter +2.2% +3.9% +8.7% +10.2% +17.9% +6.3% +5.1% +0.9% +5.6% +14.6% +7.8% +17.0% -1.9%

April +0.7% +4.2% +8.9% +11.9% +18.8% +8.0% +12.2% +0.5% +9.6% +20.8% +12.1% +6.1% -4.8%

2007

May +0.3 +2.3% +6.2% +8.6% +17.5% +7.3% +8.7% 0.0% +6.2% +17.8% +11.6% +9.9% -10.1% Source: Transport Canada and individual airports’ traffic reports. N/A: not available at press time.


NEWS ARTICLESAIR CANADA UPDATE AIR CANADA JAZZ LAUNCHES NEW VANCOUVER-SACRAMENTO SERVICE

Air Canada Jazz began non-stop service between Vancouver and Sacramento, California, on 15

June 2007. The twice-daily flights are operated using 50-seat Bombardier aircraft.

AIR CANADA WINS TITLE AS CANADIAN TRAVEL AGENTS’ FAVOURITE AIRLINE

Air Canada has been selected as the

favourite scheduled carrier of Canada’s travel agents in the 2007 Agents’ Choice Awards for the Canadian travel industry. This award is determined by over 4,000 votes that is part of a readers’ survey for Baxter Travel Media, publisher of Canadian Travel Press and Travel Courier.

WESTJET UPDATE WESTJET INTRODUCES THREE NEW CARIBBEAN DESTINATIONS

WestJet announced the launch of non-

stop service between Toronto and three new Caribbean destinations for the upcoming Winter season. From Toronto, there will be three flights per week to Montego Bay (Jamaica) starting 10 December, twice weekly flights to Puerto Plata (Dominican Republic) beginning 11 December and twice weekly flights to Punta Cana (Dominican Republic) starting 13 December.

WESTJET LAUNCHES NEW PAPERLESS BOARDING PASS WestJet has become the first airline in North America to introduce the paperless boarding pass, which allows passengers to check-in and board their flight using their personal mobile devices. Beginning in Victoria, WestJet plans to expand the use of paperless boarding to various destinations across Canada. WestJet also plans to expand their Web check-in services to include transborder destinations.

OTHER CANADIAN AIRLINES NEWS WESTJET, SKYSERVICE, SUNWING NOW DESIGNATED TO FLY TO MEXICO

WestJet, Skyservice Airlines Inc., and Sunwing Airlines Inc. have been designated to operate scheduled

air services between Canada and Mexico, by the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. In addition, Air Transat has been designated to increase their scheduled air services between the two countries. More information available in The Ottawa Report.

PORTER RECEIVES U.S. TRAFFIC RIGHTS Porter Airlines was granted official clearance rights by the U.S.

Department of Transportation on 20 June 2007. In parallel with the terms of the U.S.-Canada Air Transport Agreement, this agreement allows Porter to provide scheduled and chartered service on routes to the U.S. Porter plans to begin service to New York’s Newark Liberty International Airport in early 2008.

PORTER INTRODUCES NEW HALIFAX FLIGHTS Porter Airlines introduced summer seasonal service from Halifax to Toronto (four times daily), Montreal (twice daily) and Ottawa (twice daily). The flights will be operated from 29 June until 4 September 2007 using 70-seat Bombardier Q400 turboprop aircraft.


NEWS ARTICLES OTHER CANADIAN AIRLINES NEWS – CON’T SKYSERVICE COMPLETES FIRST ROUND TRIP TO ZAGREB Skyservice Airlines began services from Toronto to Belgrade (Serbia) on 19 June 2007 and to Zagreb (Croatia) on 21 June 2007. Both Belgrade and Zagreb flights have operated once per week using Boeing 757-200 aircraft. This marks the launch of Skyservice’s first two Toronto scheduled service to Eastern Europe. Other Eastern European destinations planned include Italy, Portugal and Serbia.

U.S. AIRLINES NEWS HORIZON AIR REDUCES FARES ON FLIGHTS BETWEEN SEATTLE AND TWO CANADIAN CITIES

Horizon Air has lowered regular fares on flights from Seattle to Kelowna and Victoria, B.C., offering travellers a more convenient and cost-effective option over driving. The airline also simplified the routes’ fare structure by dividing regular prices into three categories: a “walk-up” fare with no advance purchase required, and a 7-day or 14-day advance purchase offering increased savings.

CONTINENTAL INTRODUCES NON-STOP SEASONAL SERVICE BETWEEN NEW YORK AND MONT-TREMBLANT

Continental Airlines announced that it will be

offering non-stop seasonal service between New York’s Newark Liberty International Airport and Mont-Tremblant, Quebec, beginning 14 December 2007. The new service will utilize 50-seat Embraer-145 regional jet until 5 April 2008.

CARGO NEWS BOEING RAISES AIRCRAFT PRICES

Boeing announced that it has increased list prices for all of

its aircraft products by an average of 5.5%. This annual adjustment in aircraft prices accounts for the increasing cost of labour and materials.

BOEING REVEALS FIRST ALL-NEW PLANE IN 12 YEARS Boeing unveiled its 787 Dreamliner to 15,000 employees, customers and suppliers, as well as thousands of television viewers, on 8 July 2007. The largest model of the lightweight, carbon-composite aircraft carries up to 330 people and uses 20 percent less fuel per passenger than airplanes of similar size. With aircraft prices starting from $146 million, Boeing has taken 677 advance orders from 47 customers.

FEDEX FREIGHT CANADA UNCOVERS NEW TORONTO FACILITY

FedEx Freight Canada, a subsidiary of FedEx Freight,

announced plans to build a new combined national headquarters and 48 dock-door service centre in Toronto. As part of an aggressive growth plan, FedEx will also be adding new service centres in Ottawa, Cambridge (Ontario), Edmonton, Halifax, and Quebec City, and expand existing facilities in Winnipeg and Calgary, in the upcoming months.

CARGOJET PLANS FLEET EXPANSION WITH BOEING 727 ADDITION Cargojet announced plans to expand its fleet with the addition of a Boeing 727-200 Extended Range Freighter aircraft, scheduled to be brought into service in the second quarter of 2008. This aircraft will be capable of handling over 36,000 kilograms of cargo, a 33% increase from their current B727-200 Advanced Freighter.


NEWS ARTICLESCARGO NEWS – CON’T CARGOJET RECEIVES SHIPPER'S CHOICE AWARD

Cargojet has become the only Canadian air cargo carrier to

achieve the Shipper’s Choice Award for five times in six years. According to survey results published in the Canadian Transportation and Logistics magazine, Cargojet has exceeded shipper expectations in categories such as On-time Performance, Quality of Equipment & Operations, Customer Service, and Competitive Pricing. Overall, Cargojet achieved an aggregate score of 128.2, compared to the 2007 benchmark of excellence of 119.6.

CARGOJET WINS TRANSPORTATION HEALTH AND SAFETY AWARD Cargojet has been granted the Transportation Health and Safety Award by the Transportation Health and Safety Association of Ontario (THSAO). This achievement is awarded to companies with an injury frequency and cost rate factor below their rate group average for a minimum of three consecutive years.

PEOPLE IN THE NEWS COTA APPOINTS LAROSE AS ACTING PRESIDENT AND CEO Peter Larose has been appointed Acting President and CEO of the Council of Tourism Associations (COTA), in response to the departure of Mary Mahon Jones in June 2007. Larose will take on the responsibility as President and CEO until a permanent replacement is found.

ATA SELECTS VICE PRESIDENT OF ENVIRONMENTAL AFFAIRS

The Air Transport Association (ATA), a trade association representing principle U.S. carriers, announced that Nancy N. Young will be rejoining ATA as

the new Vice President, Environmental Affairs, effective 9 July 2007. In 2004, she was the Associate General Counsel for environment and international programs.

OTHER TOURISM TORONTO PROMOTES GAY TRAVEL Tourism Toronto announced several new initiatives to promote Toronto as one of the best international destinations for U.S. gay travellers. Tourism Toronto spent 50% more on marketing for gay travel this year compared to previous years, targeting New York, Chicago, San Francisco and Los Angeles. It was also announced that it will also be hosting the 2009 Annual Convention of the International Gay and Lesbian Travel Association.

EMIRATES PLANS TO FLY TORONTO-DAR ES SALAAM ROUTE VIA DUBAI

Emirates Airlines will be launching Toronto-Dar Es Salaam flights via Dubai, beginning 29 October 2007.

The airline plans to operate the flight three times per week using Airbus 330-200 aircraft.

ICELANDAIR LAUNCHES FLEXIBLE FARE STRUCTURE Icelandair announced that it has established a simplified fare structure, effective 21 June 2007. This new pricing structure offers airfares in the categories, “Saga”, “Economy Flex”, “Economy” and “Best Price”, allowing travellers to choose their airfare categories based on their willingness to pay, specific needs and service requirements.


Robert Andriulaitis

Vice President Transportation & Logistics

Studies

CARGO CAPERS July 2007

A New Canada-EU Air Services Agreement. As noted in the Ottawa Report, Canada and the EU intend to begin negotiations leading to a comprehensive air services agreement. At a minimum, this holds out the promise of an open skies agreement with the EU. There are a few hints in the press release, however, that give rise to the thought: dare we hope for more?

Towards a North Atlantic Common Aviation Area? Of interest is some of the wording in the Transport Canada press release. It states that the “successful conclusion of a comprehensive air services agreement would provide a framework to further strengthen the bilateral aviation relationship” and that this agreement “will be a very important step in building a closer economic partnership between the EU and Canada." This could be interpreted as the beginnings of a process leading to a common aviation area. Could we really be moving beyond a standard open skies agreement with the EU? The EU has long talked about a North Atlantic Common Aviation Area that would extend their open internal market to North America. Although the recently announced EU- U.S. air service agreement falls well short of this, they have committed to second stage of negotiations that could move these two giants towards a common aviation area this fall. Canada had not been part of earlier U.S.-EU discussions, despite the potentially huge impact on Canada. The recent Canada-EU Summit, and subsequent meeting between Minister Cannon and EU VP Barrot, suggests that Canada is now taking this seriously.

What the EU is looking for. Some of what the EU is looking for in a comprehensive agreement is similar to what Canada’s Blue Sky policy outlines for open skies agreements: unlimited 3rd and 4th freedoms, open 5th and 6th freedoms, and all-cargo 7th freedom rights. While not intending to sell this short – it would be very welcome from the perspective of Canadian shippers and travellers – this is “just” a standard open skies agreement like we have with the U.S., the U.K., and now Ireland.

Beyond this, however, we get some new twists. An absolute essential for the EU is acceptance of the “Community Carrier clause” relating to designation of carriers for international services. Traditional air service agreements require the carrier being designated for service to be “owned and controlled” by the designating State (or its nationals). In other words, a carrier designated by Germany for service to/from Canada has to be owned and controlled by Germans. The problem from the EU’s perspective is that they have granted Right of Establishment for carriers within the EU, and these carriers must have the same rights as national carriers. In other words, Air France is allowed to operate international service to/from Germany as a German carrier. Thus for a new agreement to be reached, Canada has to accept that any nation in the EU can designate any EU carrier established in that country for service. We could see Air France operating London-Toronto, or Virgin Atlantic operating Paris-Montréal.

What is the flip side for Canada? Will we see something similar in the other direction? Potentially – but I am not optimistic. If Canada pushes for it, the EU is likely to accept a “principal place of business” clause, as it did with Australia and New Zealand. However, the EU will not require this – while the new EU-US agreement recognizes the Community Carrier clause on the European side, it sticks to the standard “owned and controlled” clause on the U.S. side. What the new agreement will contain will depend on how Canada sees the future. Do we want to allow FedEx, Polar, or American Airlines


CARGO CAPERS – CON’T the right to set up a Canadian carrier using Canadian registered aircraft regulated by Canadian rules and employing Canadian air crew – or do we want to limit service from Canada to carriers owned and controlled by Canadians? Thus far, Transport Canada has shown no indication that Right of Establishment is on the table even though the opportunity is there to set the stage for foreign-owned air carriers to set up in Canada and offer international service to/from the EU.

Beyond the basics? Could we go even further than Right of Establishment? The Transport Canada press release suggests the possibility of a closer integration of air services. This could include eliminating foreign ownership restrictions, allowing cross-border mergers, and allowing cabotage services. To date, Transport Canada has been opposed to all these policies. It may be a case of a big picture view of the Canada-EU trade relationship clashing with the narrow carrier-centric view of air bilateral relations. This could make for an interesting dynamic; stakeholders may want to take this opportunity to not only support an open skies agreement in the short term, but to make their views known about the ultimate potential of a comprehensive Canada-EU (and eventually North America-EU) aviation agreement.


Gerry Bruno President & CEO InterVISTAS Consulting Inc.

Executive Director

Coordinated Clearance Coalition

TRANSFORMING BORDERS: From a “Perimeter” to a “Coordinated Clearance Strategy” July 2007

Every airport that serves international or transborder passengers is in the “border business.” This means not only having to build specialized facilities, but also ensuring that secure operating procedures are in place for sterile passenger flows. And airports with preclearance operations face an even more complex set of challenges.

Airport operators want to provide efficient facilities and a positive customer experience. They want to make sure that the departure, arrival and connecting processes for their passengers are quick, efficient and seamless. Airports are particularly keen in ensuring the reliability of connection times in order to avoid costly mis-connects of both passengers and their checked baggage.

Canadian Airport Council (CAC) member airports have long recognized the importance of these issues. The CAC organized a forum on “Perimeter Clearance” in 2000, which led to the creation of the Perimeter Clearance Coalition, a bi-national industry driven group that included representation from airports, airlines, ports, tourism organizations and border communities.

A Focus on Coordination… The events of 9/11 and the complex web of border and aviation security policies and programs that followed further highlighted the need for a more coordinated approach to the facilitation of passengers and goods through airports.

A Perimeter Clearance Strategy was developed in early 2001, offering a course of action for the modernization of border management practices through the coordinated application of new information technology and process re-design. Although many of the Perimeter Clearance principles and concepts have now been implemented for known, low-risk travellers (NEXUS, for example), there is still a lot of work to be done to securely accommodate flows of both travellers and goods. For example, a greater use of biometric identifiers will aid border agencies in processing air travellers.

…to help Airports meet new challenges Many airports are experiencing congestion caused by a combination of market growth and an increase in border and security processing times. A focus on the facilitation of known, low-risk travellers is insufficient in dealing with this congestion. We now need to broaden facilitation efforts to include known travellers and the broader travelling public that is not enrolled in any advanced screening process.

The “Perimeter” concept has been identified with the geographic coastline of North America. But as Canadian airport operators know, the border is more “three dimensional” in that an airport can serve as a point of entry. Furthermore, the Perimeter concept does not convey the need for coordination between our national border and security agencies active in airports, nor the need for coordination between Canada and the U.S. Consequently, the Perimeter Clearance Coalition has recently adopted a new name: Coordinated Clearance.

Coordinated Clearance: A New Strategic Roadmap The first milestone for the Coordinated Clearance Coalition will be to compile a new roadmap, building on its original strategy. This updated approach will be released in September, in Washington, D.C.,


TRANSFORMING BORDERS – CON’T and will feature practical recommendations for simplifying border clearance processes. Greater use of biometrics, voluntary pre-screening initiatives, and better information sharing will be key ingredients. The screening of passengers before they leave overseas destinations for Canada or the U.S. will also be central in this strategy update.

Coordinated Clearance Benefits for Canadian Airports Better coordination of clearance procedures will have a positive and direct impact on Canadian airports of all sizes. Improved processing times will please passengers and allow air carriers to increase utilization of aircraft. Greater throughput of passengers through terminals is of significant benefit to airports; the ability to defer future capital expansion through increased efficiencies is an important consideration.

More specifically, the application of Coordinated Clearance concepts to border/security management at Canadian airports will result in:

• Faster processing times by border security agencies, decreasing connection times;

• Reduced duplication of efforts from re-screening of bags;

• Decreasing space and human resource requirements for border agencies;

• Greater security through the application of new and emerging technologies;

• Alignment of security/border policies/processes with market access (e.g. Open Skies agreements).

Working smarter will help avoid the incompatibilities between different countries and focus the resources on to deal with threats: high or unknown risk people and goods. Canada and the US have had some success in cooperating on border services and aviation security, through the Smart Borders process and other initiatives. But to realize the full benefits of Coordinated Clearance, airports and other players will have to cooperate with border agencies toward a more secure and efficient regime.


Doris Mak Manager,

Special Projects

THE ASIA REPORT July 2007

China and U.S. Officially Sign Expanded Aviation Agreement This month China and the U.S. officially signed an expanded aviation agreement that had been reached in May. Over the next five years, the agreement will more than double the number of daily flights that U.S. carriers can operate to China from 10 currently to 11 later this year, 12 in 2008, 16 in 2009, 19 in 2010, 21 in 2011 and 23 in 2012. Chinese airlines can operate equivalent services. The U.S. will also be allowed to designate one new airline to fly into China in 2007 and two additional airlines in 2009. All restrictions on cargo flights will also be removed by 2011.

To date, U.S. carriers which have officially applied for new routes include: American Airlines (Chicago-Beijing) Continental Airlines (Newark-Shanghai), Delta Air Lines (Atlanta-Beijing in addition to a previous application for Atlanta-Shanghai), Northwest Airlines (Detroit-Beijing and Detroit-Shanghai) and US Airways (Philadelphia-Beijing in addition to a previous application for Philadelphia-Shanghai).

China Southern and Air China Place New Boeing and Airbus Orders China Southern Airlines placed orders for 20 A320s from Airbus (to be delivered over 2009 and 2010) and 25 Boeing 737-800s (to be delivered over 2011 to 2013). The Boeing 737s will be flown by Xiamen Airlines, of which China Southern owns 60%. Additionally, Air China placed orders for 23 A320s, which are expected to operate routes in southwest China beginning in 2009. A number of smaller Chinese airlines are also currently expanding their fleets or have plans to increase their fleets, including Sichuan Airlines, Hainan Airlines, Shanghai Airlines, Spring Airlines and China United Airlines.

Airbus Establishes Joint Venture for A320 Final Assembly Line in Tianjin, China Airbus has signed a contract to establish a joint-venture A320 Final Assembly Line in Tianjin with Chinese consortium Tianjin Zhongtian Aviation Industry Investment Co. The facility is expected to deliver its first aircraft by the second half of 2009, and will produce two A319s/A320s per month by 2010 and four per month by 2012. Nearly half of the existing 150 orders for A320s by Chinese carriers and companies will be assembled at the new Tianjin facility.

Atlas Air to Build New Cargo Warehouse at Incheon Atlas Air has entered into a joint venture agreement with AACT Company Ltd. to build a new 12,000 m2 air cargo warehouse at South Korea’s Incheon International Airport. ACCT Company Ltd. is a provider of maintenance and other ground support services to Atlas Air, Polar Air and other airlines at the airport. Atlas Air also owns 30% of ACCT, another

29% of ACCT is owned by Sharp with the remainder of the ACCT owned by other South Korean investors. This facility will be the first at Incheon to include an ownership share from a foreign airline.


John Weatherill Director,

Airline Planning

InterVISTAS Consulting Inc. UK Office

THE EUROPEAN REPORT July 2007

The European Commission: Favouring Flag Carriers? In last month’s European Report, we discussed how European Commission (EC) guidelines on state aid restrict the amount and type of airline incentives that some airports can offer. This month, we examine how the commission applies its regulatory powers, and whether a bias exists to the benefit of legacy (flag) carriers, and to the detriment of low cost carriers (LCCs).

Airport/Airline Incentives – Is the EC Targeting LCCs? Animosity between Ryanair and the European Commission escalated in early July, when the EC announced that it had opened investigations to determine whether agreements at four airports in Germany and Finland constitute illegal and incompatible state aid. At issue are agreements between Ryanair and the airports of Tampere, Finland and Lubeck, Germany, as well as an exclusive terminal use agreement between easyJet and Berlin Schoenefeld, and a general route incentive scheme offered by Dortmond Airport. In some cases, complaints were brought to the Commission by competing carriers and non-governmental organisations. Alone, the investigations are not out of the ordinary; however, Ryanair contends that the Commission has adopted a “twin track approach” because it has not taken action on complaints submitted by Ryanair over a year ago, which involve flag carriers Air France, Lufthansa, Alitalia and Olympic Airlines. Ryanair alleges that state aid is being granted by the governments of France (by discounting domestic airport fees to the benefit of AF), Germany (by subsidising operating losses at Munich Airport to the benefit of LH), and Italy/Greece (by providing cash injections for their respective flag carriers). Ryanair has announced that it will sue the European Commission for failing to take action and investigate the complaints.

Airline Mergers – An unprecedented Decision Relations between the EC and Ryanair were already frostier than normal following the Commission’s decision in late June to prohibit Ryanair from taking over it’s smaller Irish rival, Aer Lingus. The EC determined that a merger would give the combined carrier a monopoly or dominant position on 35 routes (although there are currently over 250 non-stop routes from and within Ireland). The decision was unprecedented, as the EC is publicly in favour of airline consolidation, and has approved several other large mergers and acquisitions in the recent past. These include the Air France-KLM merger, the acquisition of Swiss by Lufthansa, the merger between SN Brussels and Virgin Express (Belgium’s two largest carriers) and the merger of TAP Portugal and Portugalia (Portugal’s two largest carriers). In defence of it’s decision to veto an EU merger for the first time, the Commission argued that the proposed FR/EI merger would affect a higher number of European passengers than in any other case in the past. Ryanair has claimed that no competitors filed objections to the proposed merger, which has neither been confirmed nor denied by the Commission. Not surprisingly, Ryanair has announced that it will appeal the EC’s decision to the Court of First Instance.


Brian Kelly Executive Consultant

THE OTTAWA REPORT July 2007

Canada Signs first Open Skies Agreement with the Republic of Iceland The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, announced that Canada has signed a Blue Sky Agreement with the Republic of Iceland, making this the first Open Skies agreement between the two countries. This accord enables Canadian carriers to operate passenger and all-cargo scheduled air services between any city in Iceland and vice-versa. Canada and Iceland will both have fifth freedom rights under this new agreement, where carriers of both nations are allowed to use the other country as a platform when carrying traffic from its native country to a third country. This new agreement replaces the original Memorandum of Understanding on Air Services that allowed Icelandair to operate commercial air services to Canada since 1995. The Canada-Iceland Blue Sky Agreement offers expanded opportunities for carriers of both nations, beginning with Icelandair’s plans to change their current seasonal Halifax service to year-round service in summer 2008.

Canadian Carriers Designated to Fly Canada-Mexico The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, has designated WestJet, Skyservice Airlines Inc., and Sunwing Airlines to operate scheduled air services between Canada and Mexico, and Air Transat to operate additional scheduled air services between the two countries. Under Canada’s bilateral air service agreement with Mexico, the new airline designations as of June 2007 are as follows:

Designated Airline

Route Designated Airline

Route

Air Transat

Vancouver – Manzanillo Calgary – Manzanillo Edmonton – Manzanillo Regina – Puerto Vallarta Regina – Cancun Saskatoon – Puerto Vallarta Saskatoon - Cancun

Skyservice Airlines Inc.

Victoria – Puerto Vallarta Edmonton – San Jose del Cabo Regina – Puerto Vallarta Regina – Cancun Saskatoon – Puerto Vallarta Saskatoon – Cancun Ottawa – Acapulco Toronto – Cozumel Toronto - Huatulco

WestJet

Vancouver – San Jose del Cabo Vancouver – Manzanillo Calgary – San Jose del Cabo Calgary – Mazatlan Calgary – Ixtapa/Zihautanejo Edmonton – San Jose del Cabo Edmonton – Mazatlan Edmonton – Ixtapa/Zihautanejo Edmonton - Manzanillo

Sunwing Airlines Inc.

London (ON) - Cancun

Source: Transport Canada


THE OTTAWA REPORT – CON’T Talks between Canada and the European Union Continue The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and Mr. Jacques Barrot, Vice President of the European Commission and responsible for transport, met in Ottawa on 20 June to discuss the transportation initiatives between Canada and the European Union. Under a Canada-European Union agreement, Canada has bilateral agreements with 19 of the 27 European Union Member States. The talks between the two parties were in parallel with the recently announced Blue Sky policy. For instance, a proposed Aviation Safety Agreement to formalise Canada’s relationship with the European Commission was one of the topics at the meeting. It was also reaffirmed that formal negotiations on a comprehensive air services agreement will be held this Fall.

NEXUS Program Arrives at Ottawa International Airport The Honourable Stockwell Day, Minister of Public Safety, and Michael C. Mullen, the U.S. Customs and Border Protection Assistant Commissioner, announced the official opening of NEXUS automated self-serve kiosks at the Ottawa MacDonald-Cartier International Airport on 20 June. Already implemented at the Vancouver, Toronto and Montreal airports in Canada, the NEXUS program provides NEXUS members with a faster and more secure travel option over a passport under the Western Hemisphere Travel Initiative (WHTI). As part of the announcement, Minister Day also declared that the Ottawa MacDonald-Cartier International Airport will be offering 24/7 border services beginning in fall 2007. The NEXUS program is a joint venture between the Canada Border Services Agency (CBSA) and United States Customs and Border Protection (CBP) that is “designed to expedite the border clearance process for low-risk, pre-approved travelers into Canada and the United States”.

CTA Launches Terminal Code and Guide to Improve Accessibility The Canadian Transportation Agency (CTA) released the Passenger Terminal Accessibility Code of Practice (Terminal Code) and the Guide to Passenger Terminal Accessibility (Terminal Guide) at the 11th International Conference on Mobility and Transport for Elderly and Disabled Persons (TRANSED) that took place in Montreal, Quebec, between 18-21 June. The Terminal Code, also known as the fifth code of practice, sets minimum accessibility standards for various types of terminals, including Canada’s airports within the National Airports System, to address the needs of consumers with disabilities. Specifically, it offers technical specifications for physical terminal components, as well as issues relating to ground transportation, boarding devices, escort passes, passenger assistance and facility and awareness programs. To assist passenger terminal operators in implementing the Terminal Code, CTA produced the Terminal Guide to provide practical resources and tips for improving terminal accessibility for air, rail and marine transportation.

Transport Canada Requires All Aircraft to Install Collision Avoidance Equipment Transport Canada has made amendments to Canadian Aviation Regulations, which will require all aircraft in Canada to install collision avoidance equipment. Also known as an airborne collision avoidance system, the device supplements existing ground-based air control systems by alerting flight crews of potential collisions. Two classes of the equipment are available – one that identifies the approximate bearing and relative altitude of all aircraft within a specified range, allowing the pilot to mechanically maneuver away from the obstacle, and another version that advises the pilot on how to carry out a vertical escape maneuver and allows the system to communicate with similar on-board systems on other aircraft. Effective 1 July, at least one class of collision avoidance equipment must be installed on all recently manufactured aircraft.


Jon Ash

President InterVISTAS-ga2 Consulting Inc. Washington, D.C.

THE WASHINGTON REPORT July 2007

DOT Allows British Airways to Fly From Anywhere in Europe The U.S. Department of Transportation granted British Airways the right to serve any U.S. city from any European Union member state beginning March 2008, as part of the Open Skies agreement recently announced between the U.S and the European Union. The CEO of British Airways, Willie Walsh, announced plans to expand BA’s route system to include flights from Paris, Frankfurt, Amsterdam and Milan to New York and other U.S. cities. Walsh also expressed interest in using Boeing 757s or 767s, “in the two-class configuration, or perhaps as exclusively business class services”, to carry out these new services. This event will mark the first time in history that British Airways will “operate long-haul flights that neither take off nor land in the U.K.”

FAA Raises Safety Rating for Guatemala and Dominican Republic The U.S. Department of Transportation’s Federal Aviation Administration (FAA) announced that both Guatemala and the Dominican Republic now meet the international safety standards set by the International Civil Aviation Organization (ICAO). Following Guatemala’s reassessment on 16 April and the Dominican Republic’s reassessment on 27 April, required as part of FAA’s International Aviation Safety Assessment (IASA) program, the safety ratings for each country were raised from Category 2 to Category 1. Category 1 means that the country’s civil aviation authority meets the ICAO standards. As a result of achieving a Category 1 safety rating, Guatemala and the Dominican Republic can now apply to operate their own aircraft in the United States.

DOT Requests for Comments on Airline Bumping Rules The U.S. Department of Transportation (DOT) has requested the public for comments on possible changes to laws pertaining to airline oversales, specifically to the airline bumping rules. This law applies in a situation where a flight is oversold and there are not enough passengers willing to forfeit their seats for the level of compensation offered by the airline. In this case, the flight may depart and some passengers may be “bumped” from their flight. The current bumping rule requires that, if the airline can arrange for alterative transportation such that the passenger arrives at his/her destination within two hours of the intended arrival time, then all bumped passengers will be compensated by an amount equivalent to the passenger’s original fare (up to a maximum of $200). However, if the airline cannot fulfill this requirement, then the airline must compensate twice the amount of the original fare (up to a maximum of $400). DOT has requested for feedback on five proposed compensation limits: increasing the $200 compensation maximum to $624 and the $400 maximum to $1,024; increasing the compensation maximums to $290 and $580 respectively; doubling the compensation maximums to $400 and $800 respectively; removing all compensation maximums and setting the compensation equal to twice the original fare for longer delays; or allowing the existing limits to remain unchanged.

On-Time Performance Slips in May The U.S. Department of Transportation (DOT) recently released the Air Travel Consumer Report, a monthly report that measures a series of performance factors for the 20 largest carriers in the United States. According to the latest report, May experienced an improvement in on-time performance compared to April; however, May’s on-time arrival rate decreased from 78.3% in 2006 to 77.9% for the current year. In terms of flight cancellations, 1.1% of the carriers’ scheduled domestic flights were cancelled in May 2007, down from 1.2% and 1.8% for the months of May 2006 and April 2007, respectively. Among the 20 airlines, Hawaiian Airlines achieved both the highest on-time arrival rate of 92.8% and the lowest cancellation rate of 0.2% during May 2007. The Air Travel Consumer Report also covers information on causes for flight delays, mishandled baggage and customer complaints. The full publication can be found at http://airconsumer.ost.dot.gov.


InterVISTAS’ Canadian Aviation Intelligence Report is a collection of information gathered from public sources, such as press releases, media articles, etc., information from confidential sources, and items heard on the street. Thus, some of the information is speculative and may not materialise.

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INTERVISTAS NEWS Mark Andrew Joins InterVISTAS’ Vancouver Office InterVISTAS is pleased to announce that Mark Andrew has joined InterVISTAS’ Vancouver office as Executive Consultant, effective 25 June 2007. He has more than 20 years of experience in the hospitality industry, having served as General Manager of the Westin Bayshore and Hyatt Regency Hotels, Senior Vice President & COO of Great Canadian Railtour Company Ltd., and most recently, President of Andrew Hospitality, Inc. He has also served as chair or president for a number of tourism and hospitality industry associations, including Meeting Professionals International (MPI), Tourism Vancouver, and the Vancouver Hotels Association. Mark holds a Bachelor of Hospitality Management Degree from the BC Centre for Leadership and Innovation, Hospitality at Vancouver Community College. He is also a Certified Meeting Planner and Certified Hotel Administrator.

Alex Welch Joins InterVISTAS’ Vancouver Office InterVISTAS is pleased to announce that Alex Welch will be joining InterVISTAS’ Vancouver office as Project Analyst in the Air Service Development practice group, effective 1 August 2007. Last year, he worked with InterVISTAS as a Summer Student in the Economics, Regulatory and Logistics business unit. Alex recently completed his Masters degree in Economics at the University of British Columbia.

InterVISTAS Upcoming Speaking Engagements Dr. Mike Tretheway, Executive Vice President and Chief Economist • University of South Australia 2007 Trade Practices Workshop: Adelaide,

South Australia – 19/20 October 2007 Dr. Tretheway will be delivering a presentation titled, “What’s Next in Airline Competition Assessment?”

John Weatherill, Director, Airline Planning • Low Cost Carriers Evolving Business Models Conference: Cologne,

Germany – 6/7 November 2007 Mr. Weatherill will be delivering a presentation titled “Adapting Airport Route Development Strategies to Reflect Changing LCC Business Models”.

cair issue no. 54 - july 2007

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