Market Overview

Canada and Ethiopia Reach First-Ever Air Transport Agreement


OTTAWA, ONTARIO--(Marketwire - March 1, 2010) - Canada's Transport Minister John Baird and the Honourable Peter Van Loan, Minister of International Trade, today announced the successful conclusion of the first-ever air transport agreement with the Government of the Federal Democratic Republic of Ethiopia.

"The Government of Canada is committed to developing new and expanded international air services to benefit Canadian travellers, shippers, and the tourism and business sectors," said Baird. "This agreement with Ethiopia allows the first direct scheduled air services between the two countries."

The agreement provides flexible routings for airlines to operate flights between Canada and Ethiopia, as well as the flexibility to adjust prices according to market forces. Airlines may also choose to offer air services using the flights of other airlines, commonly known as code-sharing services.

"Our government is committed to expanding the movement of people, goods and services in support of Canadian business activities abroad. Canadian companies, including those in the aerospace sector, have had recent success in doing business in Ethiopia," said Minister Van Loan. "This agreement will help increase trade, investment and people-to-people links."

The air transport agreement contains strong provisions dealing with aviation safety and security, reflecting their importance to both countries. The provisions of the agreement are being applied administratively, which allows new air services to be introduced immediately.

Since January 2006, the Government of Canada has negotiated open, new or expanded air service agreements with 50 countries:



-- open skies-type agreements with eight countries: the United Kingdom,
Ireland, Iceland, New Zealand, Barbados, the Dominican Republic, Costa
Rica and South Korea;
-- expanded agreements with nine countries: Portugal, Brazil, Mexico,
Japan, Jordan, Singapore, the Philippines, Morocco and Cuba;
-- new "first-time" agreements with nine countries: Ethiopia, Algeria,
Kuwait, Serbia, Croatia, Panama, Turkey, South Africa and Tunisia; and
-- a comprehensive air transport agreement between Canada and the European
Union's 27 member states. This includes Cyprus, Estonia, Latvia,
Lithuania, Luxembourg, Malta, Slovakia and Slovenia, with which Canada
did not previously have air agreements.



Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at
www.tc.gc.ca/e-news and keep up to date on the latest from Transport Canada.

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