US embassy cable - 05OTTAWA1197

UNCLAS OTTAWA 001197 
 
SIPDIS 
 
STATE FOR WHA/CAN (HOLST, WHEELER), EB/TRA (BYERLY), EAP/CM 
 
STATE PASS USTR FOR SAGE CHANDLER 
 
TRANSPORTATION FOR OST/IA (EDDIE CARAZO AND SUSAN MCDERMOTT) 
 
COMMERCE FOR 4320/MAC/WH/ONIA/WORD 
 
FAA FOR KRISTA BERQUIST 
 
DHS/TSA FOR SUSAN WILLIAMS 
 
E.O. 12958: N/A 
TAGS: EAIR, ECIN, EINV, CA, CH, Transportation, Jim Peterson 
SUBJECT:  Canada and China conclude expanded air transport 
agreement 
 
1.  On April 19 Canada's Transport Minister Jean Lapierre 
and International Trade Minister Jim Peterson announced the 
conclusion of a new and expanded bilateral air transport 
agreement with the People's Republic of China.  The new 
entitlements include possibilities for all-cargo and code- 
sharing air services by the airlines of Canada and China. 
In addition, it expands the 1973 agreement by providing for 
a three-fold increase in permitted passenger and cargo 
flights to be operated by more airlines between more city 
pairs and under more flexible operating conditions than 
under the previous agreement.  (Under the terms of the 1973 
agreement, Air Canada operated 7 flights per week 
Vancouver-Beijing and Air China operated 3 flights per week 
Beijing-Shanghai-Vancouver.) 
 
2.  Industry observers expect immediate benefits for both 
national carriers:  Air China will build on its daily 
service between Beijing and Vancouver, and Air Canada will 
start flying non-stop between Toronto and Beijing in June 
2005.  The air transport agreement comes in the wake of the 
January 2005 recognition by the PRC of Canada as an approved 
tourism destination - a move that is expected to result in a 
dramatic increase in the number of Chinese visitors to 
Canada. Official recognition means that Canada can now 
actively market Canada as a tourist destination in China. 
Last year, only 77,000 visitors came to Canada from China, 
but some observers estimate that as many as a half-million 
to one million Chinese tourists a year could seek to visit 
Canada, making the approved status worth billions of dollars 
and ensuring full flights to and from China.  As for travel 
the other direction, China Tourism Commission figures 
indicate that some 348,000 Canadians traveled to China in 
2004. 
 
3.  Post has been informed that it will be two to three 
months before the agreement is released publicly (to allow 
for translation into French).  When a copy of the agreement 
is available, we will provide it to EB/TRA. 
 
Dickson