September 22, 2005

Charlottetown Senator Percy Downe said he intends to introduce a Notice of Inquiry in the Senate designed to examine the decreasing quality and quantity of air passenger and air cargo service available to the regions of Canada.

“My inquiry will examine the current, government-imposed operating requirements on Air Canada and the responsibility and opportunity for the Government of Canada to impose additional conditions on Air Canada so all Canadians can enjoy reasonably comparable levels of air service at reasonably comparable levels of cost, no matter where they live,” Senator Downe said.

It is entirely within the power of the federal government to impose service and operating conditions on Air Canada.

When Air Canada was privatized in 1988, the federal government placed conditions on the company. For example, Air Canada was forced to keep its head office in Montreal and required to maintain operation centres in Winnipeg, Mississauga and Montreal.

“So we should not be distracted by any debate over whether or not the Government of Canada should impose operating conditions on Air Canada. That decision has already been taken because the government recognizes the importance of a national airline to our country.”

Further conditions to address Air Canada’s dwindling service to the regions of Canada should be similarly imposed, Senator Downe said.

This year, the problems associated with Air Canada’s service to Atlantic Canada became particularly acute. “For example, on Prince Edward Island, Air Canada chose to eliminate the Airbus 319 direct service from Toronto with 120 seats - and replace it with the Air Jazz regional jet, with a capacity of only 50 passengers.

“In addition to limiting the traffic to Prince Edward Island, that decision also damaged Air Canada’s ability to transport luggage. The result? Teams participating in the Summerside softball tournament experienced delays in getting their equipment; musicians at the Jazz Festival had their instruments misplaced and hundreds of tourists experienced frustrating delays in getting their luggage,” Senator Downe said.

“Unfortunately, Air Canada’s poor performance may have reflected on Prince Edward Island which carefully protects its reputation as a visitor friendly destination.”

Additionally, many businesses suffered from the reduced cargo capacity because they were unable to deliver fresh produce and seafood to larger markets on a timely basis.

“This experience is hardly unique to Prince Edward Island. All of Atlantic Canada is suffering from a marked decrease in service levels.”

“I am particularly interested in finding out the motives behind Air Canada’s decision to reduce services to smaller markets,” Senator Downe said.

“Clearly, WestJet found that its traffic to Prince Edward Island justified an extension of service and Air Canada also had a high load factor this year. I am concerned that it was Air Canada’s corporate priorities that drove these decisions and not market demand.”

Senator Downe said he agrees with Prince Edward Island Premier Pat Binns, who said in the Charlottetown Guardian on August 31, 2005 “…we are a small province, but a full equal player in the Federation of Canada. Small airports across the country have been seeing service decline and costs go up but we will not stand for second class service.”

“However, I think that we can go further than mere protest,” Senator Downe said. “I think we may be able to make the case to force the Government of Canada to mandate Air Canada to provide improved regional services.”