A deal between Canada and the US has been implemented to allow Canadian and U.S. airlines to pick up passengers and cargo in each other's country as long as the flight is continuing on to a third country. "What this means is that a Canadian airline can now fly, for example, from Toronto to New York, pick up passengers in New York and continue on to Amsterdam," Canadian Transport Minister Lawrence Cannon said.
Cabotage, allowing foreign airlines to ferry passengers between cities in the other country, has not been allowed for fear of undermining domestic service. Air Canada had planned to use the Open Skies deal to launch flights from Toronto to Los Angeles, continuing to Sydney, Australia.
This arrangement is likely to not amount to much. Canada is a small market – its population is about the same as California. It is therefore unlikely any US airline will fly through Canada and on to a third country. Canadian airlines (OK, Air Canada) might do so because of the far greater US market. You might see flights to Latin America going through Miami – maybe. The world has changed and non stop flights is the way the world is going. Its not clear how this agreement will impact the market – despite the politicians saying it will cut prices. The talk about more choice and lower fares seems just talk.
