European Union transport ministers have backed an ‘open skies’ aviation pact with Canada that will deregulate cargo and passenger services across the Atlantic, from 6 May this year. The accord will allow European and Canadian carriers to fly between any airport in the 27 nation EU and any Canadian airport and includes a provision for cargo carriers to fly onward to third countries from both the EU and Canada.

The agreement also lowers barriers to foreign investment in Canadian airlines, allowing EU carriers to own up to 49 per cent of the voting stock of Canadian carriers, up from 25 per cent currently. At a later stage investors will be able to establish and control carriers in each others’ markets and eventually to fly freely within each others’ territories and onward to third countries.