CAIR Issue No. 36 - December 2005

INTERVISTAS ’CANADIAN AVIATIONINTELLIGENCE REPORT

In this issue…

Features Columns: Regular Reports:• B747-8F vs. A380F (p.1)• Boeing’s New 747-8 (p.3)• Passenger Market Demand Data: Building

Total Market Sizes (p.11)• Canada-U.S. Full Open Skies (p.13)• Cargo Capers (p.15)• U.S. – European Open Skies (p.17)• Airport Best Practices: GTAA Preparation for

Pandemics (p.18)• Are You Prepared for a Potential Avian Flu

Pandemic? (p.19)

• Airline Data-Canada (p.4)• Airline Data-U.S. (p.5)• Airport Data (p.6)• Industry News (p.7)• Washington Report (p.20)• Ottawa Report (p.21)• InterVISTAS News (p.22)

InterVISTAS’ Canadian Aviation Intelligence ReportDecember 2005 Copyright ©2005 InterVISTAS Consulting Inc., all rights reserved.Page 1

B747-8F VS A380FDecember 2005

For some time now, Boeing’s 747 family of freighters has dominated the international air cargomarket. With over 200 747 freighters in operation, these aircraft carry about half the world’s airfreight.A while back Airbus challenged Boeing’s supremacy in the large freighter category with thedevelopment of the 150-tonne capacity A380F to compete with the 113tonne 747-400F. Boeing had been studying the market feasibility of a

stretched 747 for a number of years, but turned itsattention early in 2001 to the development of theSonic Cruiser. Boeing also indicated it felt thatAirbus had overestimated the demand for very large aircraft. With changesin the market since the Sonic Cruiser was first announced, Boeing focussedits attention back to the 747 in a big way, and has now responded with itsnew 140 tonne 747-8F.

So how do the two freighters compare?

Capacity. The A380F offers 150 tonnes of payload and 938.4 cubic metres of space. While the747-8F offers significantly more capacity than the 747-400F at 140 tonnes payload and 854.3 cubicmetres of space, the A380F still provides 7% greater payload and 10% greater volume. Boeing hason occasion referred to the ability of its aircraft to handle “real world” densities (by implicationsuggesting Airbus aircraft do not); however, the 747-8F could only carry slightly more dense cargothan the A380F, at an average of 164 kg/m3 versus 160 kg/m3. It is doubtful that this will give it muchof an advantage, so the A380 clearly offers greater cargo carrying capacity.

Range. Based on aircraft characteristics downloaded from the Airbus website, the A380F can flyabout 10,400 to 10,500 km with a full payload, depending on engine choice. The 747-8F will have amaximum range of about 8,275 km. Clearly, the A380F has a significant advantage here. If we lookat the ability to carry 140 tonnes (the 747-8F maximum), the difference is more pronounced, with theA380F being able to cover some 11,400 km. From a point such as Dubai, the 747-8F can reach all ofEurope and Africa, as well as most of Asia. It cannot, however, reach the Americas. The A380F, onthe other hand, can reach into North America as far asWashington, and can cover all of Asia and even virtually allof Australia (though the key communities on the southeastcoast are just out of range). If the A380F were to be loadedwith 113 tonnes (the maximum payload of today’s 747-400F), it could reach any point other than southernCalifornia, Mexico and Central America, the western half ofSouth America and New Zealand. A clear edge to theA380F.

Economics of Operation. Here the data is murky. Boeing is claiming 20 percent lower tripcosts, and 23% lower ton-mile costs than the A380. It attributes this to the fact that the empty weightof a 747-8F is 86 tonnes less than that of the A380F, which translates into less fuel required to movethe airplane itself. Airbus has responded that the Boeing calculations are based on overstated weightand fuel burn numbers for the A380F. Some comments made with respect to the passenger versionsuggest the Boeing advantage may be closer to 12% on a trip cost basis. Nevertheless, it wouldseem that Boeing has a very important edge here.

Great Circle Mapper

Robert AndriulaitisDirector, Transportation &

Logistics Studies


B747-8F VS A380F – CON’TCost. The A380F lists at about $282 million; the 747-8F at about $278 million. Not much to choosefrom here. Of course, the actual price can vary significantly from the list price, depending on the aircarriers’ negotiating leverage and the aerospace manufacturers’ hunger for sales.

Airport Issues. Both aircraft will meet Stage 4 and QC2 noise requirements. (QC refers toQuota Count, in use at London airports for night flights.) Comparative emissions levels are hard todetermine given the mixed signals on relative fuel burn.

The 747-8F, though larger than the 747-400F, will operate at existing airports handling the 747-400.The A380, as has been widely noted, requires modifications at some airports in order to handle thisvery large aircraft.

There have also been some concerns that wake turbulence from the A380 may require longer waitsbetween take-offs. This could be an issue at congested airports – an ironic situation as one of themotivations for the A380 was to reduce congestion at hub airports.

Conclusions. At this early point in time, with few hard numbers on performance, it is difficult tosay which aircraft is “better.” As well, which is “better” will vary by carrier, depending on its needs. Sofar, Cargolux has ordered 10 747-8Fs and Nippon Cargo Airlines has ordered 8. The A380F hasbeen ordered by Emirates (2), FedEx (10), International Lease Finance Corporation (5) and UPS (10firm and options for another 10). It is certain that both aircraft will become important fixtures in theinternational air cargo world.


BOEING’S NEW 747-812 December 2005

In November 2005, Boeing added a new member to the popular 747 family with the launch of the 747-8 Intercontinental. Based on technology developed for the 787 Dreamliner, the 747-8 is marketed byBoeing as being quieter, more fuel efficient, and produces less emissions compared to other largepassenger aircraft in the market. This column compares the 747-8 with other passenger aircraft in itsclass.

Aircraft Range and Seating Capacity. The 747-8 has one of the longest ranges of anylarge passenger aircraft in the market, along with the second greatest seating capacity.

Table 1 – Comparison of Aircraft Range and Seating Capacity

Manufacturer Model Seating Capacity(three-class) Range (km)

747-8 450 14,800747-400/747-400ER 416 13,450/14,200

Boeing

777-200/200ER/200LR777-300/300ER

305/301/301368/365

9,650/14,300/17,45011,000/14,600

A340-200/300/500/600 261/295/313/380 14,800/13,350/16,100/13,900Airbus

A380 555 15,000Source: Boeing and Airbus website.

Operating Cost and Fuel Efficiency. Boeingestimates that the 747-8 will have equivalent trip costs as thesmaller 747-400, but 8% lower seat-mile costs. The manufactureralso claims that the 747-8 will have 22% lower trip costs and 6%lower seat-mile costs compared to Airbus’ A380. In terms of fuelefficiency, Boeing states that the 747-8 is 16% and 14% more fuelefficient than the 747-400 and A380 respectively.

Passenger Amenities. The SkyLoft area on the upper deck of the 747-8 Intercontinentalgives air carriers the option of adding main-deck seating capacity or to create passenger amenitiessuch as personal suites, a lounge or a business centre. This space could provide additional revenueopportunities for air carriers.

Implications and Conclusions. The 747-8 is essentially a stretched 747-400 with 787Dreamliner technology applied to it. This combination enables air carriers to use the 747-8 to serveultra long-haul markets that are too small for the A380 but too large for the 787 or 777. Anotheradvantage of the 747-8 is that the aircraft already fits most of today’s airport infrastructure. The 747-8can be operated to all of the 210 airports currently served by the 747 family, using the same pilot typeratings, services and ground support equipment. This means that air carriers currently operating the747-400 will be able to integrate the 747-8 into their fleet with minimal pilot training and relatedoperational investments.

Eugene ChuProject Analyst


Air Canada Domestic Mainline Air Canada Domestic Mainline

-15%-10%-5%0%5%

10%

Nov-04

Dec Jan-05

Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dom RPK Dom ASK

Jazz data is not includedin this graph

-10%-5%0%5%

10%15%

Nov-04

Dec Jan-05


Int'l RPK Int'l ASK

Air Canada InternationalAir Canada International

AIRLINE DATA – CANADATraffic and Load Factors on Canada’s Major Air CarriersNovember 2005

Passenger TrafficRevenue Passenger Kilometres

CapacityAvailable Seat Kilometres Load Factor

Air Carrier % Changeover 2004

% Changefrom 2003

% Changeover 2004

% Changefrom 2003

Changeover 2004

Change from2003

Air Canada1 +5.5% +9.6% +3.1% -0.7% +1.8 pts(to 76.4%)

+7.2 pts(from 69.2%)

Domestic(Mainline) -6.1% -3.7% -5.4% -13.2% +0.9 pts +9.2 pts

Jazz +98.4% +100.0% 91.4% 65.0% +2.5 pts +12.2 pts

International& Charter +11.0% +16.0% +7.7% +6.3% +2.2 pts +6.3pts

WestJet +29.3% +54.5% +5.2% +37.8% +13.4 pts(to 71.9%)

+7.8 pts(from 64.1%)

Analysis:• Air Canada reported its 20th

consecutive month of recordsystem and domestic loadfactors in November 2005.

• Air Canada’s passenger traffichas increased by more than5% since November 2004, ledby the performance of itsInternational and Charterservices.

• Jazz traffic and capacity hascontinued its double-digit growth,due in large part to a shift indomestic capacity from AirCanada mainline to Jazz.

• WestJet’s passenger trafficcontinued its strong growth, upnearly 30% from 2004. Loadfactor also climbed over 13 ptsduring the same period.

1 Air Canada consists of all Air Canada operations with the exception of Jazz.

OTHER CARRIERS:LOAD FACTORS

CanJet: not reported

0%10%20%30%

40%50%60%

Nov-04

Dec Jan-05


RPK ASK

WestJetWestJet


AIRLINE DATA – U.S.U.S. Airlines Release November 2005 Traffic Figures

Traffic Data – November 2005

Airline Load Factor Traffic(RPMs – millions)

Capacity(ASMs – millions)

77.6%

!4.2 pts10,828

!6.6%13,945

!0.8%

72.7%

!5.6 pts697

!25.7%959

!16.0%

74.2%

!3.7 pts428

"49.6%577

"52.1%

178.7%

!1.7 pts6,402

!9.2%8,135

!6.9%

73.8%

!0.4 pts9,078

"0.4%12,302

"0.8%

81.9%

"1.9 pts1,382

!23.5%1,649

!26.4%

81.2%

!3.5 pts5,474

"5.1%6,743

"9.1%

70.9%

!3.7 pts4,998

!16.4%7,050

!7.5%

279.6%

!3.4 pts8,913

!1.9 pts11,160

"2.9%

275.2%

!1.1 pts4,921

"6.0%6,544

"7.4%

Notes: 1. Mainline operations only.2. Load factor includes scheduled service only.

Sources: Carrier traffic reports.


Toronto Vancouver Montréal-Trudeau Calgary Edmonton Ottawa Winnipeg Halifax Victoria Kelowna Saskatoon Regina St.

John’s3rd Quarter +16.4% +8.7% +16.7% +6.2% +2.9% +6.6% +8.2% +8.6% +3.3% +1.1% +5.4% +0.8% +11.2%

October +14.3% +7.0% +10.7% +10.7% -4.0% +11.9% +1.1% +3.7% -1.4% +9.1% +7.9% +1.9% +18.2%November +13.3% +6.2% +17.6% +9.6 +4.7% +11.4% +4.4% +8.3% +0.3 +5.1% +8.0% -11.1% +9.9%December +14.2% +6.8% +20.9% +8.9% +8.4% +11.0% +5.1% +8.0% +2.1% +3.9% +8.1% +3.6% +6.8%4th Quarter +14.0% +6.7% +16.1% +9.7% +3.1% +11.4% +3.5% +6.4% +0.3% +5.9% +8.0% -2.1% +11.9%

2004

Full Year +15.7% +9.6% +18.6% +7.0% +5.1% +10.2% +7.7% +9.1% +5.7% +3.6% +5.6% +0.3% +14.0%January +15.0% +9.8% +14.4% +13.2% +9.6% +12.9% +13.6% +7.0% +4.7% +12.4% +17.7% +9.7% +11.9%February +8.7% +4.5% +3.8% +10.2% +7.8% +5.5% +7.0% +4.8% +7.1% +15.8% +10.4% +8.5% +1.5%

March +10.2% +8.2% +5.5% +17.5% +12.5% +7.3% +9.7% +7.1% +15.4% +19.5% +19.1% +22.2% +19.6%1st Quarter +11.2% +7.5% +7.7% +13.7% +10.0% +8.4% +10.0% +6.3% +9.3% +16.0% +15.6% +13.3% +11.5%

April +4.0% +3.9% +5.7% +3.5% +5.5% +0.1% +4.3% -0.2% +2.6% +18.8% +5.9% +3.8% +9.8%May +6.7% +5.5% +3.6% +12.2% +12.0% +5.5% +8.0% -4.5% +5.8% +26.3% +13.4% +5.7% +8.5%June +6.3% +4.0% +7.5% +10.1% +13.9% +3.4% +2.9% -0.5% +6.8% +22.7% +11.0% +12.4% 12.4%

2nd Quarter +5.7% +4.5% +5.6% +8.6% +10.4% +3.1% +5.0% -1.8% +5.1% +22.6% +10.2% +7.3% +10.3%July +3.6% +3.4% +4.0% +11.2% +11.7% +4.8% +4.5% -9.7% +1.2% +15.9% +5.1% +10.9% +14.0%

August -1.1% +2.7% +1.5% +12.7% +8.8% +4.4% +4.6% -6.4% +5.2% +26.4% +10.1% +2.4% +8.9%September +4.5% +2.6% +7.4% +7.9% +13.5% +7.1% +6.6% +0.3% +2.9% +16.1% +12.8% +13.9% +8.9%3rd Quarter +2.2% +2.9% +4.1% +10.7% +11.2% +5.4% +5.1% -5.6% +3.1% +19.6% +9.2% +8.8% +8.0%

2005

October -0.1% +4.3% +3.7% +7.1% +16.7% -0.7% +6.4% -0.7% +3.1% +16.1% +11.7% +12.8% -0.9%Source: Transport Canada and individual airports’ traffic reports.

If your airport is interested in providing InterVISTAS Consulting Inc. with its monthly passenger statistics, please email Doris Mak at [email protected].

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports


NEWS ARTICLESAIR CANADA UPDATEACE ANNOUNCES CREATION OF JAZZAIR INCOME FUND

ACE Aviation Holdings Inc.(ACE), parent company ofAir Canada, along with

Jazz Air Limited Partnership announced on 28November that a preliminary prospectus hasbeen filed for an initial public offering of units ofJazz Air Income Fund. Jazz will distribute thenet proceeds of the offering to ACE, and ACEwill retain control of Jazz through a majority-retained interest. Jazz is Canada’s largestregional airline.

AIR CANADA ANNOUNCES LAUNCH OFDAILY NON-STOP SERVICE BETWEENEDMONTON AND LOS ANGELESOn 5 December, Air Canada announced that itwould launch daily non-stop flights to LosAngeles on 1 May 2006. The Air Canada Jazzoperated flights are timed to convenientlyconnect with travelers to and from GrandePrairie and Fort McMurray.

AIR CANADA TO LAUNCH DAILY NON-STOP SERVICE BETWEEN MONTREALAND MEXICO CITYAir Canada announced on 22 November that itwould introduce non-stop flights, beginning 17June 2006 between Montreal and Mexico City.The daily year-round flights that begin in thepeak summer season will complement theToronto-Mexico City daily non-stop service.

AIR CANADA OFFERS SAVINGS OF UPTO 70% WITH ‘BUY-IN-BULK’ FLIGHTPASSESAir Canada expanded its line of multi-trip onlinepass products on 15 November with the launchof four new Flight Passes. The passes,designed for leisure clients, are available forpurchase until 30 December 2005, and offersavings of up to 70% for travelers with flexibletravel dates to selected popular sundestinations.

OTHER CANADIAN AIRLINENEWSWESTJET’S THIRD QUARTER NETEARNINGS INCREASE 44%

On 3 November, WestJetannounced its 2005 thirdquarter net earnings were

up 43.6% to $30.3 million from $21.1 millionduring the same period in 2004. Available seatmiles grew this quarter by 17.0% to 2.8 billionwhile load factor grew to 78.6% compared to76.6% in the third quarter of 2004.

WESTJET COMMENCES SERVICE TOHONOLULUOn 9 December, WestJet began its new non-stop service between Vancouver and Honolulu.WestJet offers five non-stop flights per week onthis route.

CANJET TO GENERATE $30 MILLIONWINTER CHARTER PROGRAM

CanJet announced on 18November that it wouldsubstantially increase the

number of charter flights it flies on behalf of touroperators this winter. Chris Kelly, Director,Finance & Strategic Planning at CanJet, statedthat with the implementation of longer range,more fuel efficient Boeing 737-500 seriesaircraft, they would be able to operate to most ofthe popular sun destinations this winter. Mr.Kelly added that the charter contracts wouldgenerate revenue in excess of $30 million forCanJet.

AIR TRANSAT FREE TO FLY TO ATHENSTransport Canada has granted Air Transat thedesignation to offer scheduled international airservice between Canada and Greece.According to Transport Canada, Air Transatinitially plans to offer scheduled air servicesbetween Toronto and Montreal to Athens, threetimes a week, beginning in April 2006. AirTransat formerly operated to Greece on acharter basis.


NEWS ARTICLESOTHER CANADIAN AIRLINENEWS – CON’T

TRANSAT INCOME DOWN 35% FROM2004Transat A.T., Canada's leading holidaycompany, recorded a 7.5% increase in revenueduring their fiscal 2005, but income fell 35% to$54.5 million. The company identified rising fuelcosts and intensified competition as the reasonfor the decline.

CANADIAN AIRPORTSTORONTO AIRPORT THIRD QUARTERNET INCOME UP $2 MILLION

On 10 November, the GreaterToronto Airport Authority (GTAA)reported that passenger volumegrowth has positively impacted theGTAA’s financial results.

Passenger activity rose 6% to 23 millionpassengers for the nine-month period ended 30September 2005, from the same period in 2004.After accounting for debt service andamortization, the GTAA recorded net income of$66.8 million in the nine-month period ended 30September 2005 compared to 59.4 millionduring 2004, but only $2 million for the thirdquarter alone.

NAV CANADA BUILDING NEWOPERATIONAL FACILITY IN KENORA

NAV Canada has begunconstruction of a new $2.5million Air Operations

Building in Kenora, Ontario. The new facility willbe finished construction by the summer of 2006.

CARGOETIHAD CARGO LAUNCHES CANADIANSERVICE

Etihad Crystal Cargo, EtihadAirways’ air freight division, will

move bellyhold shipments via their Abu Dhabi toToronto (via Brussels) service. Bilateral trade

between Canada and the UAE is expected todouble this year.

DHL’S LARGEST ON-AIRPORT FACILITYTO BE BUILT AT CHARLOTTE

DHL has announced that itwill build its largest U.S.

on-airport service center facility at CharlotteDouglas International Airport. The $6 millioninvestment would be an 80,000-square-footfacility, and handle a wide variety of shipments,including palletized and container freight.

FEDEX TO EXPAND INDIA SERVICEFedEx is to expand itsservice in India byincreasing flight

frequencies. It will also improve its connectionsbetween key export centers and regional hubs.The changes will allow FedEx to increase cargocapacity and enhance transit cut-off times.

AEROFLOT TO CREATE STAND-ALONECARGO SUBSIDIARY

Aeroflot Russian Airlineshas planned to set up awholly owned, independent

subsidiary titled Aeroflot-Cargo. Aeroflot’scargo turnover rose 85% in 2004, and the carrieranticipates its new subsidiary will more thandouble its current revenue by 2008.

BAX GLOBAL SOLD TO DEUTSCHEBAHN FOR US$ 1.1 BILLION

The Brink’s Companyannounced on 16November that it has

agreed to sell its Bax Global freight transportand logistics unit to Deutsche Bahn AG forUS$1.1 billion. The transaction is to becompleted by year-end.


NEWS ARTICLESPEOPLE IN THE NEWSCEO OF YVRAS ANNOUNCESRETIREMENTFrank O’Neill, President and CEO of YVRAirport Services (YVRAS), has announced 31March 2006 as the date of his retirement. Mr.O’Neill served Canada in the field oftransportation throughout his career, and helpeddrive YVRAS to be a world leader in airportmanagement. Mr. O’Neill will be succeeded byGeorge Casey, currently YVRAS Vice President,Business Development.

LOUISE PAGÉ APPOINTED TOCANADIAN TOURISM COMMISSIONBOARDThe Honourable David L. Emerson, Ministerresponsible for the Canadian TourismCommission, announced on 21 November theappointment of Louise Pagé to thecommission’s Board. Ms. Pagé holds aMaster’s degree in Public Administration andwas appointed Deputy Minister of Tourism forthe Province of Quebec in April 2005.

HARDING TO JOIN CANADIAN TOURISMCOMMISSION

Will Harding will be leavinghis position of Policy andPlanning Officer with theCouncil of TourismAssociations of BC to join theCanadian Tourism

Commission as Senior Communications Advisorin the new Vancouver office of the CTC.

CATHAY PACIFIC CHAIRMAN QUITSAt the end of January 2006,Cathay Pacific Airways’chairman David Turnbull will

leave Cathay’s parent company, the SwirePacific Group. Turnbull, who was managingdirector of Cathay Pacific for eight years, hasdecided that he wanted to return to a moreactive operational role. Christopher Pratt,chairman of Swire Pacific Offshore, will succeedTurnbull.

EDMONTON AIRPORT APPOINTS TWONEW VICE PRESIDENTSEdmonton Airports has appointed DianeTrenn as Vice President, Operations, and PeterMcCart as Vice President, Marketing. Trennjoined the Airport in 1983, while McCart hasspent the last 17 years at Air Canada.

OTHERQANTAS ORDERS 787 – TO ADDSERVICE TO VANCOUVER

Qantas ordered 65 787swith rights for an additional40. The order will be split

between the 787-8 and larger capacity 787-9.Up to 28 of the aircraft may be assigned toJetstar, Qantas' low cost subsidiary, which isexpected to grow beyond domestic and trans-Tasman service into medium haul markets.Qantas indicated that Jetstar International wouldtake the first four aircraft and would likely fly the787 to Vancouver from Brisbane andMelbourne. Qantas decided that neither the 777or A340 currently meet its needs for very longhaul capacity. It is considering either adding toits existing A380 order, or purchasing the new,longer range higher capacity 747-8.

QANTAS SET DATE FOR SYDNEY – SANFRANCISCO – VANCOUVER SERVICEBeginning 13 June 2006, Qantas will launchthree services per-week between Sydney andVancouver via San Francisco. Qantas generalmanager John Borghetti said that theseseasonal services (ending 14 August 2006) arethe first step towards establishing year-roundflights to Canada.

CANADA CREATING AIRCRAFTFINANCING PLANCanadian Transport Minister Jean-C. Lapierreannounced on 25 November that thegovernment would establish an Aircraft SalesFinancing Framework to support constructionof Canadian-made planes. The plan is designedto replace the current process of ad hocdecisions for each major project.

Passenger Market Data for Airports

InterVISTAS Consulting,

in conjunction with the

International Air Transport

Association and other

suppliers, is offering a unique

data set that provides

passenger market sizes, travel

routings and fare profile data

for domestic, transborder and

international markets.

InterVISTAS Consulting Inc.550-1200 West 73rd Avenue,

Vancouver, BC, V6P 6G5Canada

Telephone: 1-604-717-1800Facsimile: 1-604-717-1818

E-mail: [email protected]

Accurate and Timely Marketing Data:A Key to Air Service Development

Origin & Destination Market Data forall Top MarketsInbound & outbound travel agencydata is now available for Canadiandomestic and top international airmarkets.

InterVISTAS’ market data issupported by a number of sourcesincluding IATA travel agency ticketsales. Travel agency sales representapproximately 80% of scheduledinternational air tickets issuedworldwide. The database includesmore than 7 million air tickets issuedannually in Canada and severalmillion tickets destined for Canadaannually.

Identify True Origin & DestinationFlows• Quantify city-pair market sizes for

air service development initiatives

Analyse Hub Activity & Routings• Identify key routing patterns to

support air service proposals

Understand Competition withinAirport Catchment Areas• Quantify traffic leakage to

determine true market sizes

For more information, contact:Nancy KeenInterVISTAS ConsultingTelephone: 604-717-1822Email: [email protected]


Passenger Diversion(Outbound)

Passenger Diversion(Inbound)

CurrentPassenger Market

Quantify regional ticketsales/bookings diverting

to other airports

Total True Market Size

Travel agency survey(quantify tickets for low-

cost carriers andcharters)

Model carrier direct salesdata for city-pairs, using

airline capacity,PLANET & historic data

Airport passengersurvey and/or phone

survey

Cross-check resultsagainst industry data

Cross-check resultsagainst industry data

Cross-check results againstindustry data

Resort OperatorsSurvey

Quantify ticketsales/bookings

for airport

Travel agency survey(quantify tickets for low-cost

carriers and charters)

Airport enplaned/deplanedpassenger data providestotal airport traffic to match

against ticket sales todetermine carrier direct ratios

Model carrier direct salesdata for city-pairs using

airline capacity, PLANET &historic data

Passenger survey and/ortelephone survey

PASSENGER MARKET DEMAND DATA:BUILDING TOTAL MARKET SIZESDecember 2005

Timely and accurate airline industry data is critical for developing effective air service developmentstrategies and as supporting data for presentations to targeted airlines. Unfortunately, access todetailed passenger demand data, at the level required for airline route planners, has historically beena challenge in Canada, and since the merger of Air Canada into Canadian, limitations of the StatisticsAct has made matters worse. Given that government data is limited, many airport managers rely ondata from private sector vendors. Two types of data are available in Canada: airline booking andticket sales data.

Airline booking data, termed MIDT for “marketing information data tapes”, can be sourced fromseveral major Global Distribution Systems (GDS) and other intermediaries. This data representsairline passenger reservations made through the major GDS systems by travel agents. Whilereservations are not the same as tickets actually sold and used, for some applications they may be anacceptable substitute.

Airline ticket sales data are primarily sourced from the International Air Transport Association (IATA)Billing & Settlement Plan (BSP). The airline ticket sales data represent purchases through accreditedtravel agencies in Canada and other countries. This data is for tickets actually sold in themarketplace.

Both sources provide similar information, such as origin/destination passenger volumes, travelrouting, and ticket class. Unlike government data sources, both MIDT and IATA BSP data can beused to estimate drive diversion (traffic leakage). This information on passengers who live near oneairport, but who drive to another airport to travel, is essential for understanding the true potential of anairport market.

Both Sources are Limited. While airlinebooking data and airline ticket sales dataare among the most comprehensivesources of airline travel data available, intheir raw form, they do not reflect totalpassenger market sizes, since airlinetickets are also booked/sold throughother distribution channels. As a result,data modelling is required to calculatetotal market size by integratingbookings/ticket sales with carrier directand other distribution channels, plus lowcost carrier and charter data (seediagram at right). Incorporating additionaldata is particularly important for Canadiandomestic markets. This is due to thegrowth of WestJet and other carriers,whose tickets are primarily handledoutside the IATA ticket clearinghouse andthe GDS booking systems.

Nancy KeenVice President,

Market Research& Analysis


Air Ticket Sales / Bookings

Other Distribution Channels(carrier direct, Internet, low cost/charter carriers, etc.)

O/D Passengers

40-80%*

Component Data Sources

Total Market Size - Airport Site Statistics

- Traffic Allocation Models- Tourism Statistics- Airline Schedules- Airport Passenger Surveys

- IATA BSP/GDS MIDTAirline Booking/Sales Data(scaled to represent trueround trip O/D passengers)

*Proportions of coverage will vary by route and airport, but may be higher on routes withlimited low cost carrier or charter air service options.

20-60%*

PASSENGER MARKET DEMAND DATA:BUILDING TOTAL MARKET SIZES – CON’TTypically this involves integrating survey data, results of traffic allocation models (e.g., PLANET) andcertain other industry data (e.g., airport site statistics). International travel generally remains wellrepresented by both ticket sales and ticket booking sources, although there are some variations byworld region.While InterVISTAS Consulting often works with both ticket sales data and booking data, the ticketsales data is generally favoured for the following reasons:

Data Accuracy to the City-PairLevel – InterVISTAS’ preferenceis to begin with unadjusted ticketdata, which it can then adjustseparately for each market forfactors such as direct carriersales. Airline ticket booking datacan be purchased in an adjustedformat, but adjustments aretypically made a regional level,resulting in less precise estimatesof individual city-pair marketsizes. While some generalpatterns may exist, ourexperience is that carrier directsales ratios typically vary bymarket sector and individual route. Sources of route by route variability in direct carrier sales includedifferences in market size, air carrier service levels, competition, and business versus leisureimportance. Higher levels of accuracy can be achieved through adjustments on a city-pair level, aswell as by cross-checking the results with airport traffic statistics, historic government sources, flightschedules and other aviation data. Airline ticket data allow higher accuracy than booking data.

Flexibility & Ease of Access – As InterVISTAS is a Canadian distributor of the IATA ticket salesdata, the IATA database files are maintained in-house and can be immediately accessed andadjusted. In contrast, the purchase of ticket booking data generally requires a quote & negotiationprocess with one or more suppliers. This process can take two to three weeks to request competitivequotes and evaluate options/pricing. Each supplier offers a slightly different product in semi-standardreport format.

Cost Competitiveness - While both sources are competitively priced, the ticket sales product canmore readily accommodate smaller custom-run data purchases. The ticket booking products oftenhave a minimum cost threshold that is not as well suited to small requests.

InterVISTAS Consulting has been a distributor of IATA air ticket sales data in Canada since 2000.The company has recently teamed with Airclaims to also offer U.S. air ticket sales data in Canada.Our team closely tracks changes in airfare distribution/access, airline commission rates/policies, GDSdevelopments, and other issues affecting airline ticket distribution. InterVISTAS works extensivelywith Canadian and international passenger market data, airport passenger and travel agency surveyresearch and other sources to develop origin/destination passenger data to support aviation andtourism initiatives.


Michael TrethewayExecutive Vice President

CANADA-U.S. FULL OPEN SKIESDecember 2005

On 10 November 2005, Canada and the U.S. agreed to a new full open skies air services agreement.The new agreement, which will take effect on 1 September 2006, constitutes a set of amendments tothe 1995 Canada-U.S. air services agreement. While the 1995 Canada-US agreement was referredto at the time as an open skies agreement, it no longer meets that U.S. standard for an open skiesagreement. Some now refer to the 1995 agreement as the Canada-U.S. open transborderagreement. The new agreement meets the standards of a full open skies treaty.

The 1995 Open Transborder AgreementThe 1995 Canada-U.S. air services agreement provided for multiple designation of air carriers byeach country, unrestricted first and second freedom traffic rights, unrestricted third and fourthfreedoms for carriers of both countries, and country of origin charter rules. Limitations of the 1995agreement included:

• Limits on fifth freedom operations.Fifth freedom operations were allowed on only three routes: Canada-Honolulu-Australasia andbeyond (one Canadian carrier – currently Air Canada); Canada-San Juan and beyond (anynumber of Canadian carriers); and U.S.-Gander-Europe and beyond (one U.S. carrier). Note thatFull Open Skies agreements allow unrestricted fifth freedom operations. Most U.S. open skiesagreements also provide open seventh freedom rights for all-cargo services, a feature notincorporated into the 1995 agreement.1

• Prohibition of courier co-terminal services.Courier operators operating aircraft with a maximum takeoff weight greater than 35,000 poundswere not allowed to combine points in the other country. Thus, a U.S. cargo carrier could not flyfrom Memphis to Montreal and beyond to Halifax, even if only U.S. originating cargo is flownbetween Montreal and Halifax (i.e., no Canadian domestic cargo is carried on the aircraft). Notethat full open skies agreements provide unlimited ability to perform passenger and cargo co-terminalization.

• Routing and pricing flexibility.Airlines were prohibited from offering prices on sixth and fifth freedom services that undercutprices offered by third and fourth freedom carriers, and from using through flight numbering onsixth freedom services. Note that full open skies agreements provide unlimited ability to setprices on 6th and 5th freedom services, unless both countries object to a price.

• No cargo 7th freedom operations.The 1995 agreement made no provision for 7th freedom cargo operations. Thus a U.S. carriercould not operate all cargo flights such as Toronto-Paris, nor could a Canadian carrier operateflights such as Miami-Caracas. Given the directionally unbalanced nature of cargo services, 7thfreedom traffic rights may be important in some cases for improving the financial performance ofcargo services. Note that most full open skies agreements provide for unrestricted cargo 7thfreedom traffic rights, but generally make no provision for passenger 7th freedom flights.

• Another point to note is that without a full open skies agreement in place, Air Canada and Unitedhave been unable to obtain anti-trust immunity from the U.S. to allow their alliance to engage injoint setting of air fares and joint management of capacity.

1 For further information on open skies, and for definitions of terms such as 5th freedom traffic rights, visit:www.openskies.ca


CANADA-U.S. FULL OPEN SKIES– CON’TThe 2005 Full Open Skies Agreement.What was incorporated in the agreement. The 2005 agreement adds:

• unrestricted fifth freedom rights for both passenger and cargo operations;

• unrestricted seventh freedom rights for cargo;

• full cargo co-terminalisation;

• through flight numbering on sixth freedom operations;

• pricing freedoms on fifth and sixth freedom operations; and

• removal of previous regulations on computer reservation systems.

What was not incorporated in the agreement.The 2005 agreement does not include:

• cabotage;

• right of establishment; and

• passenger seventh freedom operations.

Other Comments.There was discussion of how charter services would be handled. The new agreement allowsunrestricted 3rd/4th/5th and 6th freedom charter services. Canada has consumer protectionrestrictions on charter services, but these are not incorporated into the air services treaty.

The new treaty also allows carriers to operate change of gauge services. For example, a U.S. carriercould operate a 5th freedom route such as Dallas-Vancouver-Hong Kong, and use a 737 for theDallas-Vancouver segment and a 777 for the Vancouver-Hong Kong segment.

The new agreement allows surface transport (trucking) to be used for cargo services. Thus aCanadian cargo carrier could sell Winnipeg-New York services, which are routed by air from Winnipegto Toronto and then by truck from Toronto to New York.

The new agreement has revised wording on airport (and air navigation) user charges. User chargesmust be “just, reasonable and not unjustly discriminatory.” Charges assessed on the airline of onecountry cannot be less favourable than the charges on an airline of another country. Charges maynot exceed the full costs (including a reasonable rate of return on assets, after depreciation) ofproviding services. The two countries have agreed that each must review any complaints about usercharges and must take steps to remedy any charge that does not meet the treaty’s chargingprinciples.

The existence of a full open skies agreement between Canada and the U.S. could now make itpossible for Air Canada and United to further develop their alliance by engaging in joint pricing andcapacity decisions with anti-trust immunity. The carriers will have to apply for such rights and receiveapproval, but without a full open skies agreement, the U.S. policy has been to deny anti-trustimmunity for these kinds of activities.


CARGO CAPERSDecember 2005

The new Canada-U.S. Air Bilateral Agreement. At long last, Canada and the U.S.have completed the negotiations promised shortly after the last agreement was signed in 1995, andagreed to the standard U.S. “Open Skies” model. The 2005 agreement adds a number of significantcomponents from a cargo perspective:

• Unrestricted fifth freedom rights;

• Unrestricted seventh freedom rights;

• Full cargo co-terminalisation; and

• Pricing freedoms on fifth and sixth freedom operations.

The key win: open fifth freedoms. Undoubtedly the most significant element from anational perspective is an open exchange of fifth freedoms. Now U.S. carriers can operate from theU.S. through any Canadian point, dropping off, and taking on, cargo before going on to Europe orAsia. This gives the opportunity for some smaller, and not so small, Canadian communities to gainnon-stop main deck freighter access to Asia and Europe. No longer do Canadian communities haveto try to show demand to fill up an entire aircraft, or hope to extract permission from the governmentfor ad hoc fifth freedom rights – now airport marketers have the certainty of knowing U.S. carriershave fifths and can focus on proving demand sufficient to entice U.S. carriers on a top-up basis.

Notice the specificity in the previous paragraph: “U.S. carriers can operate.” While Canadian carriersnow have the right from the U.S. to pick up traffic in the U.S. and carry it to third nations and to takecargo from third nations and carry it to the U.S. – we also need permission of these third countries todo the same before Canadian carriers can take advantage of this. The U.S. has open skiesagreements with 74 nations, which gives their carriers the right to perform 5th freedom servicesthrough Canada right now (actually, as of September 2006, when the Canada-U.S. agreement comesinto force). Canada has very few bilateral air agreements that give our carriers fifth freedom rights.Before Canadian carriers can fly from Canada to Latin America, the Caribbean, the Pacific Rim, oreven Europe via the U.S. with full traffic rights, Canada’s Chief Air Negotiator and his team ofTransport Canada and Foreign Affairs staff will have to renegotiate Canada’s bilaterals to incorporatefifth freedoms. On behalf of the Canadian carriers and the Canadian cargo community – lets getcracking! We’ve got an eight-month window to achieve as many additional open skies agreementsas possible.

A significant win: cargo coterminalisation. Many of you are probably not all thatinterested in cargo co-terminalisation – and with some justification as the number of markets wherethis is likely to take place is somewhat limited. Nevertheless, in those markets where it makes sense,it could provide airports not only with additional landing fee revenues, but a better level of service forlocal shippers through earlier deliveries and later cut-off times. Edmonton has been a leader inseeking co-terminalisation rights, and their work with the Standing Committee on Transportundoubtedly went a long way towards clearing the air and enabling a rational discussion to take place.

A potential win: cargo sevenths. We may be less likely to see cargo seventh freedomoperations here in Canada than we are fifth freedom operations given our proximity to the U.S. andour relatively small cargo market. Nevertheless, it does give U.S. carriers additional flexibility to serveCanadian markets that are currently underserved, and we’ve maintained for a long time that our

Robert AndriulaitisDirector, Transportation &

Logistics Studies


CARGO CAPERS – CON’Tcommunities are underserved as far as international freighter capacity is concerned. If somethinghappens, that would be great, as it would mean a U.S. carrier setting up shop here and operating adedicated Canada-third country service. If nothing happens, so be it – no harm done. What intriguesme is the idea that the government accepted this element – which provides a clear competitive threatto Canadian international cargo carriers -- as it indicates a degree of interest in letting the marketdictate services instead of trying to protect against the possibility of competing new services.

For Canadian carriers, once we have open skies agreements with the key third nations, seventhfreedoms provide additional flexibility and opportunity to serve one of the world’s key air transportmarkets.

Conclusion: three cheers! The Government of Canada is to be commended for reachingthis new agreement. We might complain that this is something that is long overdue, but I must admit Iam pleased how quickly an agreement was reached once Minister Lapierre and Secretary Minetaannounced they would explore opportunities to move forward at the CAC conference last February.Now it is time to show the government we were right about the opportunities and they were right toreach this agreement. Get marketing!


U.S. – EUROPEAN OPEN SKIES2 December 2005

The U.S. and European Commission Delegation reached agreement on 18 November 2005 regardinga potential first phase of an Open Skies Agreement between the two parties and issued aMemorandum of Consultations (MOC).

What the Agreement Would Cover# It would replace all existing air services treaties between the U.S. and the individual member

states of the European Union (EU).# It would put an open skies framework in place that could be expanded later in a second phase.# If implemented, the U.S. would recognise the existence of a “community carrier”.# It would establish unlimited fifth freedom rights for both parties. U.S. rights would be limited to 5th

freedoms beyond the EU.# It would create unlimited 7th freedom rights for cargo carriers. Again, U.S. right would be limited

to beyond the EU. There would be no additional 7th freedom rights between EU member states.

Implications for Canada. When combined with the Canada – U.S. open skies agreement, it couldalso create opportunities for U.S. carriers to serve Canada – Europe routes on a 5th freedom basis.

Process and Hurdles# The European Council of (Transport) Ministers (ECM) must approve the agreement before it can

be implemented.# The U.S. made clear that Ownership and Control would not be part of the first phase agreement.

However, the U.S. Department of Transportation issued a Notice of Proposed Rule Making(NPRM) on November 2, “Actual Control of U.S. air carriers”, has made this issue part of phase1.

# The European Commission will not take the agreement to its ECM for a decision until the U.S.rulemaking is final and the Commission can assess its impact. There is no guarantee that theECM would approve the agreement since there is continuing concern that the British mightinstigate another blocking action similar to what occurred in the 2004 agreement.

Forces Lining Up. A number of parties are staking out their respective positions on the NPRM.Some U.S. stakeholders will argue that the proposal, as outlined in the NPRM, cannot be legallyimplemented by the U.S. DOT because it would violate the Federal Aviation Act. However, Europeanstakeholders may argue that even if the NPRM is legal, it offers little relief to European carriers’ interms of “control” of investments in U.S. carriers. In their judgement, the NPRM merely allows theDOT greater latitude in evaluating proposals by foreign interests to invest in U.S. carriers. Membersof Congress have already expressed concern that the Administration is evolving a policy that is inconflict with the law. This argument is partially based on substance and partially on the fact that theAdministration did not adequately brief the aviation leadership in Congress.

Next Steps# Commission briefs the Council of Ministers at its December meeting (5th).# Comments are due on the U.S. NPRM on 7th of January.# The U.S. Department of Transport will issue a Final Rule, presumably in the spring of 2006

(assuming that Congress is unsuccessful in getting the NPRM withdrawn by the Department).# The Commission makes a judgement on the Final Rule and determines whether or not to ask the

Council to take action on the underlying first phase agreement. This could be in March or June of2006.

Jon Ash

President InterVISTAS-ga2 Consulting Inc.

Washington, D.C.


AIRPORT BEST PRACTICES:GTAA PREPARATION FOR PANDEMICS7 December 2005

At the Canadian Airports Council Conference in November 2005, John Kaldeway,CEO of the Greater Toronto Airports Authority (GTAA) made a very informativepresentation on the lessons the GTAA can provide to others from how it dealt withSARS in 2003. You will recall how during the SARS outbreak, the World HealthOrganisation provided “travel advice” regarding Toronto, due to a modest outbreak ofSARS there. The result was that travel to/through/from Toronto was significantly

reduced with negative impacts on the region’s tourism sector. Air Canada cited SARS as a majorfactor contributing to its weakening financial position in 2003, before and during its period of operatingunder bankruptcy protection.

During the SARS crisis, GTAA quickly responded to the travel advice and implemented an informationcampaign, screening, etc. to contribute to efforts to prevent any further spread of SARS.

Recognising the potential for other illnesses to appear, the GTAA has developed a formal process toplan for such emergencies, position supplies, undertake practice exercises to test out the functioningof their response plans, etc.

GTAA has developed for its own internal use a document titled Pandemic Influenza Planning:Maintaining Continuity of Airport Operations and Services, and announced that it is willing to sharethis document with other airports. The report provides factual background on influenza pandemics,provides an overview of actions initiated by GTAA to mitigate the threat, and provides a useful set oftables on next steps to be undertaken. These tables are blank and can be filled in by any airport todevelop its own plan for readiness.

For any airport which has not begun its own planning for the potential of a pandemic, this resourcemight be a good place to start.

For both its initiative in developing a formal planning process for dealing with a major pandemic, andfor its leadership in sharing information on what it has learned with other airports, InterVISTAS wishesto complement the management and team at GTAA. Be Prepared!

Rob BeynonDirector, Airport Marketing


WASHINGTON REPORT8 December 2005

U.S. Registered Traveller Program to be Established Nation-wideAfter a yearlong test at five airports, the U.S. RegisteredTraveller Program will be implemented across the countrybeginning June 2006. The program allows participants tobypass some onerous screening requirements such asindividual pat-downs and to board quickly through specialsecurity lines at participating airports. To obtain the ID cardrequired for the program, enrolling travellers must pay a feeand undergo a government background check.

U.S. Air Carriers Call for Senate to Enact One-Year Fuel Tax ExemptionRegional Airline Association President, Deborah McElroy and Air TransportAssociation CEO, James May, requested a one-year suspension of the 4.3%

jet fuel tax, in a hearing before the Senate Commerce AviationSubcommittee. They also asked for a one-time $600 million appropriation to

cover lost revenue.

TSA Enhances Security Screening Procedures - Softens ProhibitedItem ListOn 2 December, the Transportation Security Administration(TSA) announced updated security measures for commercialaviation. The changes will result in more random screenings,fewer prohibited items and a TSA workforce dedicated todetecting and defeating more serious threats. Beginning 22 December, small scissors, wrenches,screwdrivers, and pliers will be permitted onboard aircraft.

FAA Deploys New Communications Gateway at Air Traffic ControlCentersThe Federal Aviation Administration announced on 7 December that it hasdeployed a new communication gateway that processes radar and flight data inall 20 en route air traffic control centres. The new system, called En RouteCommunications Gateway (ECG), eliminates the possibility of a system outageby removing the single point of failure that existed in the previous system. TheECG consolidates all gateway functions into a single system, allowing allnational airspace system components to communicate seamlessly and securely.

Charles Chambers

Senior Vice PresidentInterVISTAS-ga2 Consulting Inc.

Washington, D.C.


OTTAWA REPORT1 December 2005

Transport Minister Announces Advisory Panel for Review of theCATSAOn 23 November, Transport Minister Jean-C. Lapierre announced the appointment of an advisorypanel to aid him in his review of the Canadian Air Transport Security Authority (CATSA) Act.Professor Emeritus at York University, Reg Whitaker, will serve as Chair of the Panel. Dr. JacquesBourgault, a research fellow at the Canada School of Public Service since 2001 will serve as apanellist, along with airport consultant Mr. Chern Heed. According to Minister Lapierre, the panel willconsult with stakeholders across the country in order to identify possible changes and enhancementsto the CATSA Act.

Canada in Talks to Introduce Air Service to AlgeriaInternational Trade Minister Jim Peterson, along with Transport Minister Jean-C. Lapierre andMinister of Foreign Affairs Pierre Pettigrew announced on 23 November that the Government ofCanada is prepared to discuss the creation of direct air service with Algeria. With two-way tradevalued at $3.4 billion annually, Algeria is Canada’s largest economic partner in Africa and the MiddleEast.

Government of Canada Pledges $110 Million for an Immediate ActionPlan to Enhance Transit Passenger SecurityOn 23 November, Transport Minister Jean-C. Lapierre with Deputy Prime Minister and Ministerresponsible for Public Safety and Emergency Preparedness Anne McLennan, announced earlyactions to enhance the security of Canada’s passenger rail and public transport systems, includingfunding of $110 million for an Immediate Action Plan. The plan will provide financial assistance tohigh volume rail and public transit operators to enhance security in Vancouver, Calgary, Edmonton,Toronto, Ottawa, and Montreal. Other communities will be eligible for assistance to carry out securityassessments and develop plans.

Transport Minister Announces $27 Million in Funding for MarineSecurity ProjectsTransport Minister Jean-C. Lapierre, announced on 23 November that projects to enhance security at101 ports and marine facilities across the country will receive up to $26.9 million of funding in thesecond round of the three year $115-million Marine Security Contribution Program. The funds will gotowards enhancements such as surveillance equipment, dockside and perimeter security, command,control and communications equipment, and training.

Freight Transportation Industry’s Sustainability Projects to Receive$3.3 Million in FundingTransport Minister Jean-C. Lapierre announced on 24 November that nine projects to reducegreenhouse emissions in the freight transportation industry were selected to receive near $1.3 millionin Transport Canada’s Freight Sustainability Demonstration Program. Ten other new projects wereannounced $2 million in funding on 17 November.

NAV CANADA Reports September and October Traffic FiguresNAV CANADA announced its September traffic figures on 21 November, citing an increase of 6.5%compared to the same month in 2004; as measured in weighted charging units for en route, terminaland oceanic air navigation services. On 13 December, NAV CANADA announced that October trafficwas up 3.7% from October 2004.

Sam BaroneRegional Vice President

Ottawa, ON


ARE YOU PREPARED FOR APOTENTIAL AVIAN FLU PANDEMIC ?7 December 2005

InterVISTAS is currently working with the WorldTourism Organisation and the World EconomicForum (the folks who put on the annual economic summit in Davos, Switzerland) to examine thefeasibility of developing a global disaster response network and resource for the tourism industry.Whether disasters are due to natural causes (e.g., Tsunami, Hurricane Rita) or manmade (terrorismevents, economic meltdowns such as the 1997 Asian economic crisis), theirimpact on the tourism industry, individual travellers, their families and tourismworkers can be devastating. As the Forum, WTO and InterVISTAS work onthis feasibility study, we have been tracking a potential disaster: anincreasing likelihood of a global pandemic due to avian flu.

Are you prepared? In November 2005, the World Health Organisation elevated its avian flualert rating to Yellow-3 on a 6 point scale (see below). Moving into yellow status is a significant event,as it is the signal that governments and other organisations must begin to take the threat of apandemic extremely seriously. The trigger for Yellow-3 is that a virus (H5N1 in this case) is causingillness in humans but is “not yet spreading efficiently and sustainably between humans.” There havebeen 135 cases of human H5N1 influenza, with 69 deaths. 35 of the cases and 24 of the deaths havebeen in the past two months, compared to 9 cases and 8 deaths in the previous two months. In thepast four months, none of the cases have been in China or Indonesia, 27 cases have been in Vietnamand 17 in Thailand.

It is important to note that the WHO is not recommending any travel restrictions for any country at thistime. Nor is the WHO recommending that airports or other authorities screen travellers. It doesrecommend that “travellers to affected areas should avoid contact with live animal markets andpoultry farms, and any free-ranging or caged poultry.”

While there is no pandemic at present, and no restrictions on travel, the aviation and tourismindustries may want to engage in preparedness planning. Elsewhere in this issue, we haverecognised the efforts of the Greater Toronto Airports Authority to plan for a potential pandemic, andto share with other airports a very useful planning document. For any airport which has not begun itsown planning for the potential of a pandemic, this resource might be a good place to start.

Michael TrethewayExecutive Vice President


InterVISTAS’ Canadian Aviation Intelligence Report is a collection of information gathered from public sources,such as press releases, media articles, etc., information from confidential sources, and items heard on the street.Thus some of the information is speculative and may not materialise.

To inquire about advertising opportunities or to provide comments/feedback on the InterVISTAS’ CanadianAviation Intelligence Report, please contact Rob Beynon at [email protected] or 1-604-717-1864.

To subscribe, please send an email to [email protected] unsubscribe, please send an email to [email protected].

Prepared by InterVISTAS Consulting Inc.

INTERVISTAS NEWSDecember 2005

Howard Mann Joins InterVISTAS-ga2 asManager, Policy & Market AnalysisMr. Mann recently joined InterVISTAS-ga2 from Airports CouncilInternational-North America (ACI- NA). During his five year tenure atACI-NA, Mr. Mann worked extensively with U.S. and Canadian airportmembers on a wide variety of issues including bilateral air service policy,domestic air service and passenger facilitation. Mr. Mann served as keyliaison to U.S. and Canadian airports on ACI-NA’s JumpStart program,US passport and visa policy, U.S.-VISIT and various other CBP Issues.Mr. Mann has also worked with the US Department of State, U.S.Department of Transportation and U.S. Department of HomelandSecurity on numerous occasions.

BC Ministry of Economic Development Releases InterVISTAS Study onBC’s Film IndustryOn 24 November 2005, the BC Ministry of Economic Development released a major InterVISTASstudy analysing the impact of tax credits on BC's film and television production industry. The studydocumented the economic impact of the industry, the degree of effectiveness of tax credits instimulating production, and assessed the opportunity cost of providing tax credits. The report can bedownloaded from www.ecdev.gov.bc.ca.

New Presentations Available at www.InterVISTAS.com# North American Airline Incentives: Current Practices & Future Trends (Presented by John

Weatherill, Manager, Airline Planning & Analysis at the European ASD Conference in Tenerife,Spain)

# Designing an Air Service Development Strategy (Presented by John Weatherill, Manager, AirlinePlanning & Analysis at the European ASD Conference in Tenerife, Spain)

InterVISTAS Upcoming Speaking Engagements# 23 February 2006: 9th Annual Hamburg Aviation Conference, Hamburg, Germany

Dr. Mike Tretheway, Executive Vice-PresidentDr. Tretheway has been honoured by being selected to give the Martin Kunz Memorial Lecture.

CAIR Issue No. 36 - December 2005

Documents

Transcript of CAIR Issue No. 36 - December 2005