Airports welcome back legislators with Five-Point Competitive Plan

OTTAWA - The Canadian Airports Council today welcomed back federal legislators with a call for the elimination of airport rent, more resources for border services and the negotiation of more liberalized bilateral air service agreements as three of five top priorities the government needs to tackle this year to promote world competitiveness for the nation's airports.

Consistent with the Five-Point Competitive plan the CAC presented before the House of Commons Standing Committee on Finance in the fall, the CAC also is seeking an increase in funds for the Airports Capital Assistance Program and a change in regulation to allow for Arrivals Duty Free.

"Just last November, Transport Minister Cannon made a commitment to consider Canada's position on the world stage in the field of aviation with the announcement of a new international air policy," said CAC President and CEO Jim Facette. "Today, as we start a new year for the government, we call on the minister to honour that air policy commitment through more liberalized agreements, as well as to go further and address other hurdles to Canadian competitiveness such as the imposition of rent and the resource deficit at Canada Border Services Agency (CBSA).

Canada stands out among western nations in charging airports rent. Canada's airports will pay nearly $290 million this year in rent tax - a heavy financial burden for which Canada's airports receive nothing in return. The rent tax also places Canadian airports at a competitive disadvantage to U.S. airports and other modes of transportation. It serves as yoke on the ability of an airport, and the community it serves, to further invest and expand on trade opportunities.

Meanwhile, a resource strain at Canada Border Services Agency (CBSA) is threatening the ability of Canadian communities to take advantage of international opportunities for tourism and trade. Travellers at many of Canada's airports sometimes have experienced long wait times. Meanwhile some smaller airports in Atlantic Canada, Ontario and elsewhere in the country have been unable to secure the customs resources required for proposed new international air routes into their communities.

Canada's airports contend that both issues must be addressed if communities are to truly take advantage of international air service opportunities increasingly available to them. New air service brings competition and valuable tourism and trade links to Canadian communities, which is why Canada's airports also are encouraging the federal government to aggressively move on its pledge of last November to negotiate more liberalized air service agreements with countries of the world.

"For Canada's airports, 2006 was a year in which the federal government made some very positive and refreshing commitments to improve the competitiveness of Canada in the world," said Mr. Facette. "In 2007, it is time to act on these commitments, negotiate new liberalized air agreements, resolve the CBSA resource strain that threatens the ability of communities to make use of these agreements, and once and for all eliminate the competitive disadvantage of rent."

A shortage of funds for small airport infrastructure through the Airports Capital Assistance Program (ACAP) also negatively impact airport competitiveness with other modes of transportation, such as highways.

Meanwhile a ban on arrivals duty free in Canada means Canadian duty free operators are losing out to overseas airports and air carriers by not being able to sell duty free products to travellers to Canada arriving from overseas.

Mercedes-Benz Canada appoints nine Star Dealers for 2007

TORONTO - In recognition of their exceptional performance and contribution to the success of Mercedes-Benz Canada in 2006 - when the company established new volume records overall and for the Mercedes-Benz brand

- nine Mercedes-Benz Canada dealers have earned the coveted Mercedes-Benz Star Dealer award and designation for 2007.

The award-winning dealers (from East to West) are as follows:

Carole and Louise Leblanc Auto Classique de Laval Inc. Laval, QC
Tom Hiscox Mercedes-Benz Markham Markham, ON
Peter Fuller Mercedes-Benz Mississauga Mississauga, ON
Mike Alkier Victoria Star Motors Kitchener, ON
Arnold Smith Lone Star Motors Calgary, AB
David Morris David Morris Fine Cars Ltd Edmonton, AB
Rick Sentes Kelowna Auto Gallery Kelowna, BC
Stuart Goodman Mercedes-Benz Broadway Vancouver, BC
George Taubenfligel Silver Star Auto M-B Surrey, BC
Philip Chan Mercedes-Benz Richmond Richmond, BC

The "Star Dealer" designation is awarded to dealers who meet or surpass their new and pre-owned sales targets, earn high customer satisfaction marks and exceed an extensive list of qualifying factors that affect the dealership's overall performance throughout the year. Mercedes-Benz Canada encourages Star Dealers to promote their coveted status in their local marketing and promotional activities in 2007 to distinguish themselves as recognized achievers within the Mercedes-Benz Canada dealer group.

President and CEO of Mercedes-Benz Canada, Marcus Breitschwerdt, said, "My sincerest congratulations and thanks go to these nine Star Dealers for their outstanding performance and achievement in 2006. Last year was our best ever year in terms of volume, as we set new records for Mercedes-Benz and overall sales. This was possible only because we have a tremendously committed and dedicated dealer network, but these nine dealers are the cream of the crop, as it were, because they played such an important role in the success of Mercedes-Benz Canada in 2006. Not only did they attain the stringent benchmarks and meet the extensive criteria to earn the Star Dealers standing, but at the same time they also exemplify the definition of the 'ultimate

Mercedes-Benz dealer' and set the pace for our overall network." He added, "I want to take this opportunity to thank all of our dealers for their passion and commitment to Mercedes-Benz in 2006. Going forward, we expect to have another successful year and I am glad to know that our efforts will be supported by a group of such talented and professional individuals."

Despite fluctuations in the second half of the year, 2006 sales of new motor vehicles continued their relatively stable upward trend. Prior to 2006, sales showed sizable fluctuations throughout 2005 with the introduction and subsequent removal of dealer incentive programs.

Passenger car sales rebound

While both passenger car and truck sales increased in November, passenger cars outperformed trucks, accounting for almost 84% of the increase in total vehicles sold.

Passenger car sales advanced 5.0% to 71,536 units in November. In 2006, passenger car sales remained relatively flat, up until October when sales dropped 7.0%. November's sales gain mostly offset October's decline, resulting in a relatively flat trend.

North American-built passenger cars were the main driving force behind the national sales gain in November, climbing 8.9% to partially recoup the 11.8% plunge in October. Overseas-built car sales slipped 1.8% after gaining 2.7% in the previous month.

Truck sales (which include minivans, sport-utility vehicles, light and heavy trucks, vans and buses) edged up 1.0% to 68,476 vehicles in November, the highest November sales on record and a second consecutive monthly increase. During the first half of 2006, truck sales were relatively stable, followed by a series of fluctuations in recent months.

Most of the national increase occurred in Ontario

In Ontario, new motor vehicle sales gained 7.0% in November to 52,627 units. This gain represents 84.5% of the national increase in November, offsetting declines in September and October. Despite recent instability, new motor vehicle sales have remained relatively stable in Ontario since the end of 2005.

Nearly all other provinces post gains

The number of new motor vehicles sold increased in eight provinces in November with Nova Scotia (+11.5%) experiencing the largest gain. New Brunswick (+10.6%) and Prince Edward Island (+8.5%) also registered strong sales during November.

In the West, Alberta (-3.7%) and British Columbia (-3.3%) were the only provinces to experience declines in November. New motor vehicle sales in both provinces started strong in the first half of the year, but have experienced a sales downturn in recent months.

Note to readers

All data in this release are seasonally adjusted.

Passenger cars include those used for personal and commercial purposes, such as taxis or rental cars. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

North American built new motor vehicles include vehicles manufactured or assembled in Canada, the United States or Mexico. All other new motor vehicles are considered to have been manufactured overseas.

For reasons of confidentiality, data for Yukon, the Northwest Territories and Nunavut are included with those for British Columbia.

The New Motor Vehicle Sales Survey is compiled on the basis of figures obtained from motor vehicle manufacturers and importers. These results may vary from those obtained directly from auto dealers, due to possible differences in record keeping.

Airports urge federal government to pursue historic Open Aviation Area with Canada's second largest trading bloc and tourist source

OTTAWA - The Canadian Airports Council today welcomed the European Commission's proposal to open negotiations with Canada for the pursuit of an Open Aviation Area across the North Atlantic, and urged the Minister of Transport, Infrastructure and Communities to make concluding an agreement a priority for the coming months.

"Canada has signalled to the world that it is ready to embrace air service liberalization with its new Blue Sky policy, and now the European Union has answered our call," said Canadian Airports Council President and CEO Jim Facette. "An Open Aviation Area with our second biggest trading bloc and source of tourists is a natural next step and would be a boon for Canadian communities and the travelling public by allowing for more choice and competition."

The EU is Canada's second biggest trading partner after the U.S., with some $70.1 billion in imports/exports. Traffic between Canada and the EU has doubled between 2000 and 2005 and the EU is Canada's second largest source of tourists. More than half of Canada's overseas tourists hail from Europe.

An Open Aviation Agreement with the European Union would replace individual bilateral agreements between Canada and 17 individual members of the 25-member EU and would pursue a regime consistent with the vision of Canada's recently announced Blue Sky policy. As many of Canada's individual bilateral agreements with individual EU members contain heavy restrictions, an Open Aviation Agreement also would liberalize Canada's air regime with all of the EU's 25 member states in one shot.

According to a study launched by the European Commission, the number of passengers between the EU and Canada would increase from eight million now to 14 million by 2011. In addition, the EC estimates that an Open Aviation Area would generate consumer benefits of at least $110 million through lower fares and could create 3,700 jobs in the first year.

"Throughout 2006, the CAC called on the federal government to take a new approach to international air policy, including a multi-lateral approach to the EU," said Mr. Facette. "An Open Aviation Agreement with Europe would remove outdated barriers on airlines from both sides to operate between Canada and Europe, allowing travel companies to provide service that better responds to market demand."


Canada's new Government welcomes European Commission interest in air agreement negotiations

OTTAWA - The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today welcomed the European Commission's decision to present a negotiating mandate to its Council of Ministers for approval.

"I am pleased that the European Commission is eager to negotiate an air agreement with Canada," said Minister Cannon. "The announcement made by the European Commission today is a positive development and is consistent with this government's recently announced Blue Sky policy, which commits to actively pursue the negotiation of open agreements when it is in Canada's overall interest."

The European Commission is the driving force in the European Union's institutional system. Its main roles are to propose legislation, to administer and implement Community policies, to enforce Community law and to negotiate international agreements, mainly those relating to trade and cooperation.

Transport Canada has recently consulted stakeholders on the general theme of a comprehensive agreement with the European Union. The analysis of comments received is underway, and specific consultations on technical matters are also planned.

Officials from the Government of Canada and the European Commission are scheduled to meet at the end of February to hold preliminary discussions. Transport Canada is committed to the development of a healthy and viable air transportation industry through, among other things, the expansion of international air services markets.

Canada currently has individual agreements with 17 of the 27 European Union Member States. Under a Canada-European Union agreement, as envisaged by the government, Canada's air transport relations with European Union Member States would be governed by a single regime.

TORONTO - Porter Airlines increased its service January 8, 2007, between Toronto and Montreal to nine round-trips each weekday. Saturday's schedule includes two round-trips, plus four on Sundays. The route began Dec. 11, with four weekday return flights.

Operating from its base at Toronto City Centre Airport, Porter offers convenient access to downtown Toronto along with complimentary amenities that include premium in-flight snacks, beer and wine, and a passenger lounge with wireless Internet access, espresso bar and computer work stations. "Passengers are responding to the time savings of up to two hours they gain on round-trip flights by flying from the island airport and the focus that Porter has on service," said Robert Deluce, president and CEO of Porter Airlines. "It's the perfect time to offer more flights on the Montreal-Toronto route with business travel picking up after the holidays."

The recent delivery of Porter's fourth 70-seat Bombardier Q400 aircraft is allowing for the increase in service.

Porter launched on Oct. 23, with 10 weekday round-trips between Toronto and Ottawa. It has created over 200 jobs in Toronto, Montreal and Ottawa.

Dave was first elected to the OMCA Board in 1999 and has served as Secretary Treasurer and Vice Chair. He has also served on numerous OMCA committees.

He will preside over an industry that has seen many ups and downs over the last few years. Fluctuating and rising fuel prices, as well as the high insurance rates of 2004 has put pressure on company profits. Travel and tourism was greatly affected by 911 and then by SARS. But the industry is seeing a resurgence in tours and travel to the US because of the change in the value of the dollar. As well, commuter business to and from the GTA is growing and provides a great opportunity for coach companies.

Dave Willis is positive about the industry and looks forward to overseeing it as it meets the challenges of 2007. “Motor coach travel is the safest, environmentally friendly, cost efficient and the most flexible way to travel. With road congestion, concern for the environment, airport inconveniencies and pressure on the taxpayers, comfortable motor coach travel is bound to increase”, says Willis.

Ayr Coach Lines has been operated by the Willis Family for over 41 years, serving the Waterloo Region with various types of transportation. Just over a year ago Ayr Coach sold their school bus fleet so they could focus on the motor coach market expanding through-out South Western Ontario and into the State of New York. The Willis family’s vision has always been to provide “Quality Service” to their customers which has not only maintained their valued customers, but increased their client base. This is why Ayr Coach developed and values their slogan “Miles of Smiles”.