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LEGISCANTM
INDEPENDENT AIR RESTRUCTURING TRANSITION Debra Ward, the Independent Observer on Air Restructuring, recently appointed by Transport Minister Collenette, stated that she is ready to listen and learn from the industry and the public on what the impact of the air restructuring will have on them. Speaking at the Ottawa Chapter of the Chartered Institute of Transport, Mrs Ward said that in contrast to the Air Canada Ombudsman, she is looking at longer term impacts on consumers, on urban, rural and remote communities, on airports, on airline employees and on travel agents. Her job is to report every six months directly to
Minister Collenette, and make recommendations in a final report after her mandate of 18-24 months ends. In this final report she will identify the stakeholders requirements, state what the roadblocks are, what helps and what
hinders in getting towards a fully functioning air restructuring. With a background in tourism and with no current office or staff in Transport Canada, Mrs. Ward stated that In her monitoring that will be carried out by a combination of personal visits to communities, focus groups and surveys, she will assess whether measures
in Bill C-26 are appropriate, how government departments and agencies such as the Canadian Transportation Agency [CTA] and Competition Bureau contribute, whether the Passenger Bill of Rights is viable and whether Air Canada
is meeting its linguistic obligations. To do this, Mrs Ward said she will have to overcome some of the myths that the public has at present. For example, apart from Air Canada, there are over 923 airlines in Canada, with 15
classed as major. Another myth is that only tourists fly in excursion class - whereas many business people fly excursion class and over a Saturday to save airfares, apart from some families flying in Business Class on points.
However, the biggest myth is that air mergers only affect air travellers and airlines, whereas all of the public and industry is impacted by factors such as air cargo [especially in the North], by lack of flights into expanding
business communities and limits to tourism growth. She noted that, even in the US, there was a lot of discontent this summer in the air. Factors influencing this included late flights and overbooking, air traffic control,
weather and safety concerns. Although the Canadian public is not necessarily pleased with lost luggage and merger difficulties, especially at major hubs, Air Canada has given an 180 day promise which will involve capacity
balancing. As well, Westjet is expanding and new airlines such as CanJet provide alternatives for the public, providing predatory pricing is checked. Clearly, air restructuring is complex and is an interaction of economic, social
and global considerations. A sustainable airline industry is essential to Canada. Some of the factors that she will be assessing, all of which have their pros and cons, include Canadian and or foreign ownership, cabotage
[allowing foreign airlines to pick up and drop off passengers within Canadian borders], the impact of present government regulation, and stability of the air industry in changing economic times. In the short term, this will mean
monitoring the AC/CAI merger, the 180 day promise, capacity versus demand, community adaptation to new air schedules and competition to AC from new and expanded carriers, all in order to assess whether Canadians In the longer term, she will assess carrier viability, the existing government regulatory framework,
monopoly rates and AC Reported by Ray Pearmain Ray Pearmain is the Past President of the Ottawa Chapter of the Chartered Institute of Transport and consults in and monitors transportation and other sectors for Legiscan Monitoring & Research.
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