Change Coming to our Industry

[Guest]

1. Passenger compensation

2. Foreign ownership / investment

Ottawa plans to loosen Canada's foreign investment rules for airlines

The Canadian Press
Published Thursday, November 3, 2016 8:27AM EDT

MONTREAL -- The federal transport minister is promising to do something for frustrated travellers booted off oversold flights or waiting for lost luggage.

Marc Garneau says the Liberals will introduce an air passenger rights regime in the coming months that will establish clear, minimum requirements so Canadians know their rights, and when they are eligible for compensation.

The plan would pull ideas from dozens of other countries that have similar regimes, including the United States and members of the European Union.

It would craft into Canadian law something that had been pushed by the NDP and picked up on by the previous Conservative government, but never turned into reality.

Garneau says the regime will be clear and fair to travellers and airlines and include compensation standards for passengers denied boarding due to factors within the carrier's control, or in cases of lost or damaged baggage.

He says the government also wants to help drive down the cost of air travel by loosening Canada's strict foreign investment rules for airlines to help create more competition from low-cost carriers.

Garneau says international companies will soon be able to own 49 per cent of an airline in Canada, a jump from the current 25 per cent, once the government makes the necessary legislative amendments.

In the meantime, Garneau says he is granting exemptions that will allow aspiring discount airlines Canada Jetlines and Enerjet to land more international investors, giving the airlines what they have long requested.

Garneau made the announcements in a speech today where he laid out the government's transportation plans for the coming decades, including putting black boxes in locomotives, changes to airport security to avoid lengthy delays for travellers, and stricter environmental standards for the transport sector.

The government has been looking at making major changes to how goods and people are moved by road, rail and air after a sweeping review of the Transportation Act was released earlier this year.

[Vsplat]

I can't imagine how the Minister could justify an exemption that allows uneven funding for some airlines over others. 

If this is a blanket exemption that allows AC, WJ, Transat and Jazz to attract foreign money at the same time, then OK.  Otherwise it's just going to start another round of snake bite predatory pricing fuelled by an outside war chest.  Each time we have seen investor money used to undercut, all that has occurred is that the flying public's recalibration of what a reasonable air fare is, almost instantly concluding that one can sustainably run an air service while charging less than bus fare between major cities.  The responsible airlines, or those whose cost structures bear federal burdens, get accused of gouging.

I hope the Liberals are smart enough not to make this mistake again.  On the other hand Mr Garneau, while you have the air transportation file open on your desk, I think there might be an open to-do list there from the TSB.  And some of us could stand a bit less exhaustion in our lives.....

FWIW

Vs

[Airband]

54 minutes ago, Vsplat said:

 And some of us could stand a bit less exhaustion in our lives.....

And if you were rail crew such exhaustion would be recognized and considered critical enough to be placed on the 2016 TSB Watchlist of Key Safety Issues, but alas...

[Vsplat]

Agreed.  It seems the threshold for dealing with safety involves the near complete destruction of a community. 

Looking at the online documents of the 'cost of travel' press release, I had the powerful urge to assemble a powerpoint slide deck of the airport artwork, that abomination that is the new sign pillar at GTA (I have heard that cost hundreds of thousands), viewing platforms, on and on and ON.  Couple that with the pictures of weeds poking up between mismatched slabs of tarmac, the view from the flight deck approaching 25 or 32 at night in the nation's capital and others from the target rich environment that is systemic shortcomings from misdirected priorities.

The cynic in me believes that,  If airlines get access to more money, airports and others will find a way to ratchet up their fees accordingly.   The benefit to the travelling public will be miniscule compared to the cut taken by all of the others in the feed line.

But that is just my opinion....

Vs

[dagger]

WestJet responds to transportation act review

Cost of aviation infrastructure remains major challenge to low-cost travel

CALGARY, Nov. 3, 2016 /CNW/ - WestJet today responded to Transport Canada's review of the Canada Transportation Act.  

"We recognize and appreciate the extensive consultation that has been undertaken by the federal government over the past year, and we are supportive of many measures announced today," said Gregg Saretsky, WestJet President and CEO. "However, we firmly believe the largest challenge to ensuring low fares for Canadian consumers is the rising cost of aviation infrastructure. Canada is a much more expensive jurisdiction in which to operate than other jurisdictions. We are disappointed the government has not signaled more clearly a willingness to meaningfully review aviation taxation and cost structure." 

With respect to specific policy announcements:

• Canadian Air Transport Security Authority (CATSA): WestJet strongly supports the plans to fully examine CATSA service delivery and improve processing times to align with international standards. This is an exercise that can be undertaken quickly to affect meaningful change.  
   
• Passenger rights: As an airline that prides itself on industry-leading guest service, WestJet welcomes the opportunity to work with the government as it develops further regulation, and clarifies carrier obligations. 
   
• Foreign ownership: WestJet's position has been that changes to foreign ownership should be done on a reciprocal and negotiated basis with other countries, versus a unilateral increase, which was announced today. 

 

"WestJet looks forward to participating fully in further regulatory and policy development activity as outlined in the minister's speech," said Saretsky. "And we will continue to call on the government to aggressively tackle the issue of escalating cost in commercial aviation in Canada."

[Zan Vetter]

How will increased foreign ownership affect airfares? Are foreign investors more predisposed to losing money in air transportation than are canadian ones? I guess we'll find out. Last we all checked, existing canadian airlines are all still pulling from the same labour pool and flying to the same dozen airports. The magic sauce for cost cutting is...a foreign equity stake? OKayyyyy.

[Lakelad]

.

The race is on to launch new ultra-low-cost airline after Canada grants foreign ownership exemptions

 

Thu Nov 3, 2016 - Financial Post
by Kristine Owram

 

The race is on to launch a new ultra-low-cost airline in Canada after the federal government said Thursday it will immediately exempt two aspiring carriers from existing foreign ownership limits and eventually ease the rules for all Canadian airlines.

 

Enerjet, a Calgary-based charter airline, said it intends to partner with Phoenix, Ariz.-based Indigo Partners LLC, one of the world’s most influential airline investors, to get its planned ultra-low-cost carrier (ULCC) off the ground.

 

That announcement came only hours after Transport Minister Marc Garneau said he’ll exempt Enerjet and Canada Jetlines Ltd., another nascent ULCC, from a law that restricts foreigners from owning more than 25 per cent of a Canadian airline.

 

Under the exemption, Jetlines and Enerjet’s ULCC, tentatively dubbed FlyToo, will be able to sell up to 49 per cent of their shares to foreign investors, although no one foreign shareholder will be able to own more than 25 per cent.

 

The federal government will also pursue legislation to permanently raise the foreign ownership limit to 49 per cent for all Canadian carriers, including Air Canada and WestJet Airlines Ltd.

 

Indigo co-founder and managing partner Bill Franke told the Financial Post in July that he would be “actively interested” in Canada, but only if the foreign ownership rules changed.

 

“We would like to thank the minister and his dedicated team for taking up the challenge of making much-needed and difficult changes to the transportation investment environment,” Franke said in a statement Thursday. “We look forward to the benefits that all Canadians will enjoy from this leadership.” Indigo Partners has backed some of the world’s most successful ULCCs, including Florida-based Spirit Airlines Inc., which introduced the model to the United States under Indigo’s guidance a decade ago.

 

Although Enerjet and Indigo still need to reach a definitive agreement on what exactly the investment will look like, having such a prominent investor lined up will significantly cut down on the airline’s launch time, said Darcy Morgan, Enerjet’s chief commercial officer.

 

Enerjet already has an operating certificate for its charter service, which will save it “at least a year,” and Indigo’s support will also take “months out of the cycle,” Morgan said. “I’d like to think we’re probably 18 months ahead of anyone who would be starting from scratch.”

 

At Jetlines, meanwhile, chief executive Jim Scott said Thursday’s announcement has made it much more likely that the airline will get off the ground, and he is targeting a summer 2017 launch date. “It’s a lot easier for us than it was before, there’s just no question about that,” Scott said.

 

'Shares in Air Canada and WestJet both fell Thursday on the prospect of increased competition,'

.

 

[Vsplat]

Well, that didn't take long.  Didn't even get a chance to finish suggesting a scenario. 

As for the labour pool in Canada, wait for it.  No one said anything about crews being only from Canada.

Vs

 

 

[Guest]

News Release     Enerjet Responds to Minister Garneau Speech on Nov 3, 2016 Date: November 3, 2016 CALGARY, ALBERTA - Today in Montreal, the Minister of Transport for Canada, the Honorable Marc Garneau, presented his plan for transforming the national transportation system, including several provisions pertaining to the betterment of the aviation industry in Canada. In response to the announcement by the Minister, the Canadian airline, Enerjet, reaffirmed its plan to establish a nation-wide ultra-low-cost carrier ("ULCC") offering low priced commercial air service benefiting all Canadians. Concurrently, Enerjet announced its intentions to partner with Indigo Partners LLC of Phoenix, Arizona, to fast-track development of this new class of air service for Canadians. Together with Indigo, Enerjet will develop a Canadian ULCC with a strong financial foundation and broad international experience - implementing a model that has met with success around the globe. The customers and shareholders of this new ULCC will benefit from the capital, talent, best-practices, and strong industry presence introduced through this partnership with Indigo. Enerjet President, Tim Morgan, commented: "We are excited to develop a new airline which offers widely-available low-cost fares and convenient air travel for Canadians. We intend to make travel for Canadians more affordable, and to provide a much needed economic stimulus to Canada and to every Canadian community we serve. We also expect the airline will create several thousand Canadian jobs in the next few years. Mr. Morgan further noted "Canada is very fortunate to be serviced by two of the safest and most successful airlines in the world, yet remains one of but a few developed nations not to benefit from a discount airline." Indigo Partners LLC Managing Partner, Bill Franke, commented: "We would like to thank the Minister and his dedicated team for taking up the challenge of making much-needed and difficult changes to the transportation investment environment. We look forward to the benefits that all Canadians will enjoy from this leadership." Further announcements regarding the details of the launch of the ULCC, including the company structure, flight schedule, launch dates and locations will be made in appropriate time after all government and regulatory changes are approved. About Enerjet  Enerjet is a Canadian airline operating flights since 2008 with corporate customers in the energy, construction, defence, travel & tourism and public sector markets. Using New Generation Boeing 737 aircraft, Enerjet is licensed to offer charter, scheduled, domestic and international flights. About Indigo Partners LLC Indigo Partners LLC is an experienced, world class investor in Ultra-Low-Cost Carriers. Their investment strategies and knowledge having proven to be significantly successful around the world including North America, Asia and Europe. Media Contact Darcy Morgan, Chief Commercial Officer Enerjet +1.403.648.2824 119-1440 Aviation Park NE Calgary AB T2E 7E2 stock images: www.enerjet.ca/media.html @goenerjet

[conehead]

Under the new Trans Pacific Trade deal, I believe foreign Maintenance workers can be brought in.

[Guest]

3 minutes ago, conehead said:

Under the new Trans Pacific Trade deal, I believe foreign Maintenance workers can be brought in.

I believe this is what you are referring to:

Consolidated TPP Text

Canada’s schedule of commitments for temporary entry for business persons

1. The following sets out Canada’s commitments in accordance with Article 12.4 (Grant of Temporary Entry) in respect of the temporary entry of business persons.

2. Canada may adopt or maintain any measure that is not specifically prohibited in this schedule.

A. Business Visitors

1. Canada extends its commitments for “after-sales or after-lease service” to business persons of another Party, if that Party has made a commitment in its Schedule for after-sales and after-lease related activities (e.g. installation, maintenance or repair) without reserving the right to impose or maintain an economic needs test or numerical restriction for those activities.

2. Canada extends all other commitments under this category to business persons of another Party, if that Party has made a commitment in its Schedule without reserving the right to impose or maintain an economic needs test or numerical restriction for any of the following headings:

• Business Visitors
• Short Term Business Visitors
• Service Sales Persons

3. Canada shall grant temporary entry to Business Visitors, without requiring that person to obtain a work permit or an equivalent requirement prior to entry as a condition for temporary entry.

4. Canada will not impose or maintain any numerical restriction relating to temporary entry of Business Visitors.

Description of Category

Definition:

Business Visitors comprise business persons for whom:

• (a) the primary source of remuneration for the proposed business activity is outside Canada; and
• (b) the principal place of business and the predominant place of accrual of profits remain outside Canada,

who are seeking to engage in one of the following business activities:

Meetings and Consultations

Business persons attending meetings, seminars or conferences, or engaged in consultations with business associates.

Research and Design

Technical, scientific and statistical researchers conducting independent research or research for an enterprise in a Party other than Canada.

Manufacture and Production

Purchasing and production management personnel conducting commercial transactions for an enterprise in a Party other than Canada.

Marketing

Market researchers and analysts conducting independent research or analysis or research or analysis for an enterprise in a Party other than Canada.

Trade-fair and promotional personnel attending a trade convention.

Sales

Sales representatives and agents taking orders or negotiating contracts for goods or services for an enterprise in a Party other than Canada but not delivering goods or providing services.

Buyers purchasing for an enterprise in a Party other than Canada.

Distribution

Transportation operators transporting goods or passengers from the territory of a Party to Canada or loading and transporting goods or passengers from Canada, with no unloading in Canada, to the territory of another Party.

After-Sales or After-Lease Service

Installers, repair and maintenance personnel, and supervisors, possessing specialised knowledge essential to a seller's or lessor’s contractual obligation, performing services or training workers to perform services, pursuant to a warranty or other service contract incidental to the sale or lease of commercial or industrial equipment or machinery, including computer software, purchased or leased from an enterprise located in a Party other than Canada, during the life of the warranty or service agreement.

General Service

Professionals engaging in a business activity at a professional or technical level as set out in Section D (Professionals and Technicians)

Management and supervisory personnel engaging in a commercial transaction for an enterprise in a Party other than Canada.

Financial services personnel (insurers, bankers or investment brokers) engaging in commercial transactions for an enterprise in a Party other than Canada. 
Tourism personnel (tour and travel agents, tour guides or tour operators) attending or participating in conventions or conducting a tour that has begun in a Party other than Canada.

Translators or interpreters performing services as employees of an enterprise in a Party other than Canada.

Conditions and Limitations (including length of stay)

Length of stay is up to six months. Extensions are possible.

B. Intra-Corporate Transferees

1. Canada extends its commitments for “management trainee on professional development” to business persons of another Party, if that Party has made a commitment in its Schedule for management or graduate trainees without reserving the right to impose or maintain an economic needs test or numerical restriction for those business persons.

2. Canada extends its commitments for “specialists” to the following Parties: Australia, Brunei Darussalam, Chile, Japan, Mexico, New Zealand, and Peru.

3. Canada extends all other commitments under this category to business persons of another Party, if that Party has made a commitment in its Schedule without reserving the right to impose or maintain an economic needs test or numerical restriction for Intra-Corporate Transferees.

4. Canada shall grant temporary entry and provide a work permit or work authorisation to Intra-Corporate Transferees, and will not:

• (a) require labour certification tests or other procedures of similar intent as a condition for temporary entry; or
• (b) impose or maintain any numerical restriction relating to temporary entry.    

5. Canada shall grant temporary entry and provide a work permit or work authorisation to spouses of Intra-Corporate Transferees of another Party where that Party has also made a commitment in its schedule for spouses of Intra-Corporate Transferees, and will not:

• (a) require labour certification tests or other procedures of similar intent as a condition for temporary entry; or
• (b) impose or maintain any numerical restriction relating to temporary entry.

Description of Category

Definition:

Intra-Corporate Transferees comprise business persons employed by an enterprise in the territory of a Party who seek to render services to that enterprise’s parent entity, subsidiary or affiliate, in its territory as an executive or manager, a specialist, or a management trainee on professional development.

Canada may require the business person to have been employed continuously by the enterprise for one year within the three-year period immediately preceding the date of the application for admission.

For the purpose of this definition, specialist means an employee possessing specialised knowledge of the company’s products or services and their application in international markets, or an advanced level of expertise or knowledge of the company’s processes and procedures.

For the purpose of this definition, management trainee on professional development means an employee with a post-secondary degree who is on a temporary work assignment intended to broaden that employee’s knowledge of and experience in a company in preparation for a senior leadership position within the company.

For the purpose of this definition, executive means a business person within an organisation who:

• (a) primarily directs the management of the organisation or a major component or function of the organisation;
• (b) establishes the goals and policies of the organisation, or of a component or function of the organisation; and
• (c) exercises wide latitude in decision-making and receives only general supervision or direction from higher-level executives, the board of directors or stockholders of the business organisation.

For the purpose of this definition, manager means a business person within an organisation who:

• (a) primarily directs the organisation or a department or sub-division of the organisation;
• (b) supervises and controls the work of other supervisory, professional or managerial employees;
• (c) has the authority to hire and fire or take other personnel actions (such as promotion or leave authorisation); and
• (d) exercises discretionary authority over day-to-day operations.

Conditions and Limitations (including length of stay)

Length of stay is up to three years. Extensions are possible.

The length of stay for spouses, including extensions, shall be the same as that of the business person they are accompanying who has obtained temporary entry under  this Section B.

C. Investors

1. Canada extends its commitments under this category to business persons of another Party, if that Party has made a commitment in its Schedule without reserving the right to impose or maintain an economic needs test or numerical restriction for any of the following headings:

• Investors
• Independent Executives
• Persons Responsible for Setting up a Commercial Presence           

2. Canada shall grant temporary entry and provide a work permit or work authorisation to Investors and will not:

• a) require labour certification tests or other procedures of similar intent as a condition of temporary entry; or
• impose or maintain any numerical restriction relating to temporary entry.

3. Canada shall grant temporary entry and provide a work permit or work authorisation to spouses of Investors of another Party where that Party has also made a commitment in its schedule for spouses of Investors, and will not:

• (a) require labour certification tests or other procedures of similar intent as a condition for temporary entry; or
• (b) impose or maintain any numerical restriction relating to temporary entry.

Description of Category

Definition:

Investors comprise business persons seeking to establish, develop or administer an investment to which the business person or the business person's enterprise has committed, or is in the process of committing, a substantial amount of capital, in a capacity that is supervisory, executive or involves essential skills.

Conditions and Limitations (including length of stay)

Length of stay is up to one year. Extensions are possible.

The length of stay for spouses, including extensions, shall be the same as that of the business person they are accompanying who has obtained temporary entry under this Section C.

D. Professionals and Technicians

1. Canada extends each occupational commitment under this category to business persons of another Party, if that Party has made a commitment in its Schedule covering that same occupation without reserving the right to impose or maintain an economic needs test or numerical restriction on those business persons.

2. Canada shall grant temporary entry and provide a work permit or work authorisation to Professionals and Technicians and will not:

• (a) require labour certification tests or other procedures of similar intent as a condition for temporary entry; or
• (b) impose or maintain any numerical restriction relating to temporary entry.

3. Canada shall grant temporary entry and provide a work permit or work authorisation to spouses of Professionals and Technicians of another Party where that Party has also made a commitment in its schedule for spouses of Professionals and Technicians, and will not:

• (a) require labour certification tests or other procedures of similar intent as a condition for temporary entry; or
• (b) impose or maintain any numerical restriction relating to temporary entry.

Description of Category

Definition:

Professionals means business persons engaged in a specialty occupation requiring:

• (a) theoretical and practical application of a body of specialised knowledge; and
• (b) a post-secondary degree of four or more years of study, unless otherwise provided in this schedule, and any additional requirement defined in the National Occupation Classification (NOC), and
• (c) two years of paid work experience in the sector of activity of the contract, and
• (d) remuneration at a level commensurate with other similarly-qualified professionals within the industry in the region where the work is performed. Such remuneration shall be deemed to not include non-monetary elements such as, inter alia, housing costs and travel expenses.

Technician means a business persons engaged in a specialty occupation  requiring:

• (a) theoretical and practical application of a body of specialised knowledge, and
• (b) a post-secondary or technical degree requiring two or more years of study as a minimum for entry into the occupation, unless otherwise provided in this Schedule, as well as any other minimum requirements for entry defined in the NOC, and
• (c) four years of paid work experience in the sector of activity of the contract, and
• (d) remuneration at a level commensurate with other similarly-qualified technicians within the industry in the region where the work is performed. Such remuneration shall be deemed to not include non-monetary elements such as, inter alia, housing costs and travel expenses.

For the purpose of this definition, specialty occupation means, for Canada, an occupation that falls within the NOC levels 0, A, and B.

Conditions and Limitations (including length of stay)

The length of stay is up to one year. Extensions are possible.

The length of stay for spouses, including extensions, shall be the same as that of the business person they are accompanying who has obtained temporary entry under this Section D.

---

The following specialty occupations will be granted Temporary Entry for nationals of the Party indicated:

Australia

Professionals:

Canadian educational requirements for professionals shall be deemed to be met for the purpose of entry whenever an Australian professional has met Australian educational requirements and the Canadian client or employer has provided a letter indicating that the Australian professional’s qualifications are satisfactory, provided that Australia maintains similar treatment for Canadians seeking entry under the category of Contractual Service Suppliers in Australia’s schedule of specific commitments.

All occupations listed in the NOC levels 0 (Managers) and A (Professionals), except for:

All health, education, and social services occupations and related occupations
All professional occupations related to Cultural Industries
Recreation, Sports and Fitness Program and Service Directors
Managers in Telecommunications Carriers
Managers in Postal and Courier Services
Judges and Notaries

Technicians:

The following occupations listed in the NOC level B (Technician) unless otherwise indicated:

Civil Engineering Technologists and Technicians
Mechanical Engineering Technologists and Technicians
Industrial Engineering Technologists and Technicians
Construction Inspectors and Estimators
Engineering Inspectors, Testers and Regulatory Officers
Supervisors in the following:

• Machinists and Related Occupations
• Printing and Related Occupations
• Mining and Quarrying
• Oil and Gas Drilling and Service
• Mineral and Metal Processing
• Petroleum, Gas, and Chemical Processing and Utilities
• Food, Beverage, and Tobacco Processing
• Plastic and Rubber Products Manufacturing
• Forest Products Processing
• Textile Processing

Contractors and Supervisors in the following:

• Electrical Trades and Telecommunications Occupations
• Pipefitting Trades
• Metal Forming
• Shaping and Erecting Trades
• Carpentry Trades
• Mechanic Trades
• Heavy Construction Equipment Crews
• Other Construction Trades
• Installers, repairers, and servicers

Electrical and Electronics Engineering Technologists and Technicians
Electricians
Plumbers
Industrial Instrument Technicians and Mechanics
Aircraft Instrument, Electrical, and Avionics  Mechanics, Technicians, and Inspectors
Oil and gas well Drillers, Services, and Testers
Graphic Designers and Illustrators
Interior Designers
Computer and Information Systems Technicians*
International Purchasing and Selling Agents
Architectural Technologists and Technicians
Industrial Designers
Drafting Technologists and Technicians
Land Survey Technologists and Technicians
Technical occupations in Geomatics and Meteorology

* includes elements of NOC level A

Brunei Darussalam

Professionals

The following occupations listed in the NOC levels 0 (Managers) and A (Professionals):

Petroleum Engineers

Chile

Professionals:

All occupations listed in the NOC levels 0 (Managers) and A (Professionals), except for:

All health, education, and social services occupations and related occupations
All professional occupations related to Cultural Industries
Recreation, Sports and Fitness Program and Service Directors
Managers in Telecommunications Carriers
Managers in Postal and Courier Services
Judges, Lawyers and Notaries except for Foreign Legal Consultants

Technicians:

The following occupations listed in the NOC level B (Technician) unless otherwise indicated:

Civil Engineering Technologists and Technicians
Mechanical Engineering Technologists and Technicians
Industrial Engineering Technologists and Technicians
Construction Inspectors and Estimators
Engineering Inspectors, Testers and Regulatory Officers
Supervisors in the following:

• Machinists and Related Occupations
• Printing and Related Occupations
• Mining and Quarrying
• Oil and Gas Drilling and Service
• Mineral and Metal Processing
• Petroleum, Gas, and Chemical Processing and Utilities
• Food, Beverage, and Tobacco Processing
• Plastic and Rubber Products Manufacturing
• Forest Products Processing
• Textile Processing

Contractors and Supervisors in the following:

• Electrical Trades and Telecommunications Occupations
• Pipefitting Trades
• Metal Forming
• Shaping and Erecting Trades
• Carpentry Trades
• Mechanic Trades
• Heavy Construction Equipment Crews
• Other Construction Trades
• Installers, repairers, and servicers

Electrical and Electronics Engineering Technologists and Technicians
Electricians
Plumbers
Industrial Instrument Technicians and Mechanics
Aircraft Instrument, Electrical, and Avionics  Mechanics, Technicians, and Inspectors
Oil and gas well Drillers, Services, and Testers
Graphic Designers and Illustrators
Interior Designers
Computer and Information Systems Technicians*
International Purchasing and Selling Agents

* includes elements of NOC level A

Japan

Professionals:

All occupations listed in the NOC levels 0 (Managers) and A (Professionals), except for:

All health, education, and social services occupations and related occupations
All professional occupations related to Cultural Industries
Recreation, Sports and Fitness Program and Service Directors
Managers in Telecommunications Carriers
Managers in Postal and Courier Services
Judges, Lawyers and Notaries except for Foreign Legal Consultants
Researchers, except for those working in an academic entity

Technicians:

A Japanese associate’s degree, or the equivalent of such a degree, or higher is required.

Canada reserves the right to refuse temporary entry to a Technician seeking to fulfil a contract which does not require significant application of theoretical knowledge in physical sciences, engineering or other natural sciences, or human sciences, such as economics.

The following occupations listed in the NOC level B (Technician) unless otherwise indicated:

Civil Engineering Technologists and Technicians
Mechanical Engineering Technologists and Technicians
Industrial Engineering Technologists and Technicians
Construction Inspectors and Estimators
Engineering Inspectors, Testers and Regulatory Officers
Supervisors in the following:

• Machinists and Related Occupations
• Printing and Related Occupations
• Mining and Quarrying
• Oil and Gas Drilling and Service
• Mineral and Metal Processing
• Petroleum, Gas, and Chemical Processing and Utilities
• Food, Beverage, and Tobacco Processing
• Plastic and Rubber Products Manufacturing
• Forest Products Processing
• Textile Processing
• Electrical Trades and Telecommunications Occupations
• Pipefitting Trades
• Metal Forming
• Shaping and Erecting Trades
• Carpentry Trades
• Mechanic Trades
• Heavy Construction Equipment Crews
• Other Construction Trades
• Installers, repairers, and servicers

Electrical and Electronics Engineering Technologists and Technicians
Industrial Instrument Technicians and Mechanics
Aircraft Instrument, Electrical, and Avionics  Mechanics, Technicians, and Inspectors
Oil and gas well Drillers, Servicers, and Testers (excluding operators)
Graphic Designers and Illustrators
Interior Designers
Computer and Information Systems Technicians*
International Purchasing and Selling Agents
Architectural Technologists and Technicians
Industrial Designers
Drafting Technologists and Technicians
Land Survey Technologists and Technicians
Technical occupations in Geomatics and Meteorology

* includes elements of NOC level A

Malaysia

Professionals:

The following occupations listed in the NOC levels 0 (Managers) and A (Professionals):

Financial Auditors and Accountants
Financial Analyst
Architecture Managers
Architects
Landscape Architects
Mechanical Engineers
Civil Engineers
Electrical and Electronics Engineers
Chemical Engineers
Industrial and Manufacturing Engineers
Metallurgical and Materials Engineers
Mining Engineers
Geological Engineers
Petroleum Engineers
Aerospace Engineers
Computer Engineers
Other Professional Engineers
Urban and Land Use Planners
Veterinarians
Computer and Information Systems Managers 
Information Systems Analysts and Consultants
Database Analysts and Data Administrators
Software Engineers
Computer Programmers and Interactive Media Developers
Web Designers and Developers

Actuaries

Mexico

Professionals:

All occupations listed in the NOC levels 0 (Managers) and A (Professionals), except for:

All health, education, and social services occupations and related occupations
All professional occupations related to Cultural Industries
Recreation, Sports and Fitness Program and Service Directors
Managers in Telecommunications Carriers
Managers in Postal and Courier Services
Judges, Lawyers and Notaries except for Foreign Legal Consultants

Technicians:

The following occupations listed in the NOC level B (Technician) unless otherwise indicated:

Civil Engineering Technologists and Technicians
Mechanical Engineering Technologists and Technicians
Industrial Engineering Technologists and Technicians
Construction Inspectors and Estimators
Engineering Inspectors, Testers and Regulatory Officers

Contractors and Supervisors in the following:

• Electrical Trades and Telecommunications Occupations
• Heavy Construction Equipment Crews
• Other Construction Trades
• Installers, repairers, and servicers

Electrical and Electronics Engineering Technologists and Technicians
Electricians

Industrial Instrument Technicians and Mechanics

Graphic Designers and Illustrators
Interior Designers
Computer and Information Systems Technicians*

* includes elements of NOC level A

Peru

Professionals:

All occupations listed in the NOC levels 0 (Managers) and A (Professionals), except for:

All health, education, and social services occupations and related occupations
All professional occupations related to Cultural Industries
Recreation, Sports and Fitness Program and Service Directors
Managers in Telecommunications Carriers
Managers in Postal and Courier Services
Judges, Lawyers and Notaries except for Foreign Legal Consultants

Technicians:

The following occupations listed in the NOC level B (Technician) unless otherwise indicated:

Civil Engineering Technologists and Technicians
Mechanical Engineering Technologists and Technicians
Industrial Engineering Technologists and Technicians
Construction Inspectors and Estimators
Engineering Inspectors, Testers and Regulatory Officers
Supervisors in the following:

• Machinists and Related Occupations
• Printing and Related Occupations
• Mining and Quarrying
• Oil and Gas Drilling and Service
• Mineral and Metal Processing
• Petroleum, Gas, and Chemical Processing and Utilities
• Food, Beverage, and Tobacco Processing
• Plastic and Rubber Products Manufacturing
• Forest Products Processing
• Textile Processing

Contractors and Supervisors in the following:

• Electrical Trades and Telecommunications Occupations
• Pipefitting Trades
• Metal Forming
• Shaping and Erecting Trades
• Carpentry Trades
• Mechanic Trades
• Heavy Construction Equipment Crews
• Other Construction Trades
• Installers, repairers, and servicers

Electrical and Electronics Engineering Technologists and Technicians
Electricians
Plumbers
Industrial Instrument Technicians and Mechanics
Aircraft Instrument, Electrical, and Avionics  Mechanics, Technicians, and Inspectors
Oil and gas well Drillers, Services, and Testers
Graphic Designers and Illustrators
Interior Designers
Computer and Information Systems Technicians*
International Purchasing and Selling Agents
Architectural Technologists and Technicians
Industrial Designers
Drafting Technologists and Technicians
Land Survey Technologists and Technicians
Technical occupations in Geomatics and Meteorology

* includes elements of NOC level A

[FA@AC]

42 minutes ago, Zan Vetter said:

Are foreign investors more predisposed to losing money in air transportation than are canadian ones? 

Some are at least equally predisposed.  Etihad buys chunks of money-losing airlines here and there.

[conehead]

Yes Malcolm, thank you. That was quick!

[Vsplat]

Keep in mind as well that the Minister recently assigned full Canadian commercial/airline transport pilot privileges to foreign licence validations.
 

Low cost at what cost?

Vs

[dagger]

I note the foreign ownership change will be to raise foreign ownership to 49%, but only 25% for any one individual or group. So it is not a pure 49%. I also believe that the government will have to amend the ACPPA (again) to apply this to AC. Might as well just scrap the whole thing.

[dagger]

BTW, I'm always bemused by the media coverage of things like ULCC. The reporters always mention the bottom Ryanair fares as if that's what you commonly get in Europe, which is BS. Yes, with early booking and no extras like checked bags or even carryon in some cases, you can get such fares, but most people are paying more, often a lot more. And in Europe, it does stimulate some travel by offering lower costs and creating less than daily city pairs. I flew from Germany to Porto, Portugal for a weekend for a good fare, on EasyJet. We just have less of such unserved city pairs in this country, so the competition will be on fares only, and less on convenience. I mean Porto is a great tourist city and draws from across Europe, but even at that, EasyJet only serves the Stuttgart-Porto route twice a week, and we had to be up at 5am to get to the airport and surrender our rental car in time to make the flight.

It's not going to be like that in Canada, because it's not like that in the US.

Let's take Spirit. 

I set up an online price test to establish what fares likely will look like in Canada. 

I chose a nonstop route with good competition, to and from the cities' major airports, and comparable distance to Toronto-Calgary: Chicago-Los Angeles. I chose the cheapest nonstop of the day each way, and avoided the Thanksgiving weekend rush. (I used Nov 18-21, outbound Friday, return on a Monday). 

The base fare, excluding US government taxes, converted to C$ at today's rate, is CAD$294. I then added Canadian taxes of $151 since that is inescapable for any ULCC. Spirit charges for carryon other than purses or very small backpacks, so it's only fair to add one carryon, and the time of booking rate, which is less than the fees for adding that bag later:  I added C$90 for the return.

That raised the Spirit fare to C$535.

 

AC and WS both charge $728 all-in for YYZ-YYC on the same days. That's based on their cheapest flights of the day.

Now, what I can't determine is how much more a ULCC would face in imbedded government costs. The AC/WS fares reflect higher Canadian landing and terminal charges, and the federal excise tax on fuel. Logically, the ULCC would face some of that higher cost structure. It could avoid part of that by choosing to serve airports like Abbotsford and Hamilton, but there is not much of an alternative to Calgary, Winnipeg, Edmonton, etc. And if you have three ULCC's flying from Hamilton or Abbotsford, they cannibalize each other. There will be a price different between AC/WS and the ULCC's but it might not be enough to significantly undercut the larger airlines profitability.

But the real deception will be for the public when they find out that what works in major European markets, or on high density US routes doesn't work here, that there are few if any $29 fares to go coast to coast.

 

 

 

 

[Vsplat]

My concern in all of this follows the Jetsgo experience.  The business strategy proved to be unsustainable, but before they shut down they did a lot of damage to the public's perception of air travel.  We still see lingering effects where passengers believe they are being gouged, when they are in fact paying less than train fare for the seat. 

And Jetsgo cut a lot of corners trying to shave costs.  They didn't kill anyone but they came damn close.  Close enough that we really don't need to see that experiment repeated.

Vs

[Zan Vetter]

Jetsgo also operated in an environment of plentiful labour ie. pilots/AMEs, post-9/11, post-Canada 3000...etc. If the major airlines are already worried about filling skilled positions and have moved to lock up supply from their regionals with movement agreements, how will a new entrant, and one with a mandate to operate as cheaply as possible, fare? Won't be anybody's first choice employer, let's say that. Jetsgo was able to hire in many cases experienced pilots desperate for a job, any job. Very different case today. 

[moeman]

For those interested in the Jetsgo incident in Calgary.

JETSGO[1].pdf

[Vsplat]

The difference this time around is that foreign pilots can work in Canada without getting a Canadian licence.  The very shortage you cite will be the basis for hiring foreign workers.

I hope that doesn't happen, but I see few safeguards in place to prevent it.

Vs

[FA@AC]

4 hours ago, Vsplat said:

The difference this time around is that foreign pilots can work in Canada without getting a Canadian licence.  The very shortage you cite will be the basis for hiring foreign workers.

Sunwing has been operating with a (seasonal?) pool of non-Canadian pilots for a while now, I believe.  Will this legislation make it even easier for carriers to employ foreign labour?

[FA@AC]

8 hours ago, dagger said:

BTW, I'm always bemused by the media coverage of things like ULCC. The reporters always mention the bottom Ryanair fares as if that's what you commonly get in Europe, which is BS. Yes, with early booking and no extras like checked bags or even carryon in some cases, you can get such fares, but most people are paying more, often a lot more.

 

 

 

 

I have usually found the same.  Fares on Ryanair for its crap product can be dirt cheap if booked really far in advance, but when booked on short notice, are often more expensive than those of legacy carriers especially when baggage charges etc are factored in.  Easyjet, which I find to be a perfectly decent carrier, usually prices out at around the same level as legacy airlines.  In fairness, legacy carriers would be charging far more than they now do if LCCs/ULCCs didn't compete on their routes.

[Super 80]

I think anyone anticipating a wellspring of US investment is going to be disappointed, there is tremendous skepticism about the potential of the Canadian market.

[Guest]

Indigo certainly has the experience to draw upon, mind you that is in full ownership.

Bill Franke's Indigo to Acquire Frontier Airlines

 

By

Jack Nicas

Oct. 1, 2013 12:05 a.m. ET

The man who turned Spirit Airlines Inc. into one of the industry's stingiest but most profitable carriers agreed in principle to buy Denver-based Frontier Airlines, a transaction that likely signals the expansion of the ultralow-cost sector of the U.S. airline industry, according to a person familiar with the deal.

Indigo Partners LLC, the investment firm of Bill Franke, agreed late Monday to purchase Frontier from Republic Airways Holdings Inc. in a deal largely based on the assumption of debt, the person said. The agreement was being reviewed by lawyers overnight and was expected to be announced early Tuesday, the person said. The exact terms were unclear.

The sale appeared in jeopardy in recent days because of slow negotiations with Frontier's pilots and flight attendants. But hours before the expiration of Indigo's period of exclusive negotiations to buy Frontier, the two sides agreed to a deal in principle that is subject to a number of conditions, including a labor agreement with the pilots, the person said.

The groups representing the attendants and pilots in those negotiations with Indigo didn't respond to requests for comment.

Mr. Franke plans to turn Frontier into an ultralow-cost carrier, a more extreme version of the traditional discount airline that cuts costs and fares with tactics such as packing more seats onto planes and charging for extras that previously were free, a person familiar with his thinking has said.

Mr. Franke has helped pioneer the ultralow-cost model with airlines in Singapore, Hungary, and Mexico. After buying Spirit in 2006, he stripped its costs and approved new fees like those for boarding passes and carry-on luggage. This summer, shortly after Indigo began exclusive talks for Frontier, Mr. Franke sold his stake in Spirit and resigned as its chairman.

Spirit and Allegiant Travel Co. have used the ultralow-cost model to become two of the fastest-growing and highest-margin carriers in the industry.

Frontier, the 10th-largest airline in the U.S. by seats, is roughly the size of Spirit. Each has just more than 50 aircraft and about 1 million seats for sale in October, or approximately 1.5% of the U.S. domestic market, according to Innovata LLC, an airline data provider.

Spirit, however, has built a diverse network across the U.S. and Latin America, challenging incumbent carriers in big cities with its cut-rate fares. Frontier, meanwhile, is tied to Denver. About 93% of its 7,000 flights next month are scheduled to begin or end in the city, where it's the third largest carrier after United Continental Holdings Inc. and Southwest Airlines Co.

Savanthi Syth, an airline analyst for Raymond James Financial Inc., said the new Frontier would likely turn its focus away from Denver. "I don't think he'll be able to do it as hub and spoke out of Denver," she said. "So that'll be positive for United and Southwest."

The advent of a third ultralow-cost carrier in the U.S. signals the further segmentation of the U.S. airline industry into three tiers, she said. Full-service carriers like United and Delta Air Lines Inc. cater to business travelers and frequent fliers. Discounters like Southwest and JetBlue Airways Corp. offer a quality product for a reasonable price. And Spirit and Allegiant look to stimulate traffic with bare-bones service and the lowest fares.

"These are people who don't need the frills and don't mind flying at odd times of the day," she said. "And there appears to be a significant enough market that Spirit and Frontier can share."

Write to Jack Nicas at jack.nicas@wsj.com

[Super 80]

We have a few contemporaneous issues here.

1. There is a wide perception that the Canadian economy is precariously perched on the edge of oblivion.

2. Federal and Provincial carbon taxes.

3. Repeal of Bill C-525's changes to the Canada Labour Code that will make it easier to unionize federally regulated industries.

4. Northern Venezuela (Ontario and Alberta)