INTERNATIONAL AIR TRANSPORTATION POLICY 

The views of the International Association of Machinists and Aerospace Workers (IAMAW) on the “International Air Transportation policy” being proposed by the present government, was presented to Transport Canada on November 8, 2006 and is summarized as follows:

The IAMAW is the largest union representing air transport workers in Canada, and in North America. In Canada, we represent over 20,000 workers in the sector, employed by air carriers such as Air Canada and Air Transat, as well as service companies providing maintenance, ground service, fuelling, screening and other services to the industry. We urge the government to listen to the voices of workers in this key sector.

Air transport is both an important and a vulnerable industry. It is essential support for our economic and social development. It helps glue this country together, while providing employment directly and indirectly to well over 100,000 Canadians, working for air carriers, airports, aerospace and the many ancillary services that support it. Thoughtless action could leave us without significant Canadian carriers committed to serving Canadian communities.

Given the results of over twenty years of domestic air deregulation – a long history of airline failures and near-bankruptcies, disruptions and job losses, leaving us with a more concentrated and financially weaker sector - we are distressed by the total lack of analysis on several fronts. Areas such as the impact of deregulation to date and the potential impacts of the various regulatory changes proposed need clarification. We must consider the possibility that - given the nature of the industry, and Canada’s position in a world of increasingly-concentrated monopolies - the practical strategy might be to change and strengthen our regulatory regime, rather than blindly move down the path of further deregulation and the destruction of Canada’s air transportation industry.

A large share of air transportation costs such as fuel, security, taxes, navigation and airport fees are out of the industry’s control. These costs have a major impact on the competitiveness of Canadian carriers, in relation to their international counterparts. Simply liberalizing international protocols doesn’t automically produce a “level playing field.”

International air carriers have responded to increased costs by expanding their capital base into other countries. They have resorted to: buying into foreign airlines, setting up subsidiaries in other countries, joining regional or international airline alliances, or striking joint ventures. The growth in multinational ownership of airlines and the desire by carriers to liberalize regulations to enable them to become global enterprises creates many challenges.

The United States government has fiercely promoted the liberalization of international air routes. However, the US domestic market, the largest aviation market in the world, provides a vital economic platform for its own aviation and aerospace industries. For this reason, the US Government argues for 'open skies' agreements on international routes, but maintains a protective barrier around its domestic aviation market.

There is nothing to be gained from entering into another round of Open Skies negotiations with the U.S. The stalled talks with the European Union is proof that the U.S. has no interest in opening its domestic market any further to Canadian or other foreign carriers.

Conclusion:

We hope that Transport Canada and the Government will look at the real world, understand the importance of this industry to Canada, and that any new policy developed will add to the viability and long-term health of Canada.

The intimate connection between many countries and their civil aviation industries has allowed many trade unions and other stakeholders to engage with legislators on the issues that affect them. This is vital for a democratic society which leads to generally better conditions for workers.

The IAMAW believes that a simple-minded commitment to free trade is not suitable for Canadian air transport. It weakens national government controls on an industry which relies on government oversight to ensure its operational safety.

Many countries ban foreign ownership and control of their national airlines for reasons of national security and to retain infrastructure control in an emergency. The Canadian Government should take a cue from this and maintain it in Canada.

The close link between national airlines and states should be maintained in order to protect the social, economic and other interests of the country. Canada should ensure that safety and security are not compromised by commercial considerations.

Future developments in the aviation industry should be based on the principles of fairness and reciprocity, the highest safety, labour and social standards, the protection of jobs and working conditions, quality service, fair distribution of benefits of the industry and a continuing public service ethos.

Finally, there should be full and meaningful participation by trade unions and their representatives in all intergovernmental discussions on the future of the industry, and in negotiations between states on bilateral and other agreements governing air transport.

To read the full IAMAW full submission click here

Carlos DaCosta
Airline Coordinator
IAMAW Canada