Transborder Air Services Since 1994

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1 Tri-Airport Open Skies Initiative Transborder Air Services Since 1994 strategic transportation & tourism solutions Prepared for Aéroports de Montréal, The Greater Toronto Airport Authority, and the Vancouver International Airport Authority 2

2 Tri-Airport Open Skies Initiative Transborder Services Since 1994 Prepared for Aéroports de Montréal Greater Toronto Airport Authority Vancouver International Airport Authority Prepared by InterVISTAS Consulting Inc.

3 Tri-Airport Open Skies Initiative Page i Table of Contents 1.0 Introduction Overview Transborder Air Services Canada Transborder Air Services by Market Transborder Market Profile Calgary, AB (YYC) Transborder Market Profile Campbell River, BC (YBL) Transborder Market Profile Charlottetown, PEI (YYG) Transborder Market Profile Dawson City, YKT (YDA) Transborder Market Profile Edmonton, AB (YEG) Transborder Market Profile Fredericton, NB (YFC) Transborder Market Profile Ganges Harbour, BC (YGG) Transborder Market Profile Halifax, NS (YHZ) Transborder Market Profile Hamilton, ON (YHM) Transborder Market Profile Kamloops, BC (YKA) Transborder Market Profile Kelowna, BC (YLW) Transborder Market Profile Kitchener, ON (YKF) Transborder Market Profile London, ON (YXU) Transborder Market Profile Moncton, ON (YQM) Transborder Market Profile Montreal, QB (YUL) Transborder Market Profile Nanaimo, BC (YCD) Transborder Market Profile Old Crow, YKT (YOC) Transborder Market Profile Ottawa, ON (YOW) Transborder Market Profile Port McNeil, BC (YMP) Transborder Market Profile Quebec, QB (YQB) Transborder Market Profile Regina, SK (YQR) Transborder Market Profile Saint John s, NF (YYT) Transborder Market Profile Saskatoon, SK (YXE) Transborder Market Profile St. John, NB (YSJ) Transborder Market Profile Thunder Bay, ON (YQT) Transborder Market Profile Toronto, ON (YYZ) Transborder Market Profile Vancouver, BC (YVR) Transborder Market Profile Victoria, BC (YYJ) Transborder Market Profile Whitehorse, YKT (YXY) Transborder Market Profile Winnipeg, MB (YWG) Transborder Market Profile Yarmouth, NS (YQI)...40

4 Tri-Airport Open Skies Initiative Page Introduction In February 1995, Canada and the U.S. signed an Open Transborder Air Services Agreement. 1 This briefing examines the level of transborder (Canada-U.S.) air services prior to the agreement (1994) and today. For each Canadian community with transborder service in 1994 and/or 2005 it reports changes in transborder and domestic seat capacity and identifies specific carriers and routes served in the two years. This briefing note also reports changes in the level of Canadian domestic service in those markets with transborder air services in 1994 and/or Overview Overall, the level of transborder air services from Canada has increased dramatically since the 1995 Open Transborder Air Services Agreement was signed. The number of Canadian cities with transborder air services has increased from 21 in 1994 to 27 in 2005, with smaller communities being the beneficiaries. The number of transborder routes have nearly DOUBLED to 171 in 2005 A total of ten cities including Campbell River, Ganges Harbour, Kamloops, Kelowna, Kitchener, Nanaimo, Old Crow, Port McNeil, Saint John s and Saskatoon, which previously did not have services to the U.S., have gained new non-stop transborder services. Although four cities including Dawson City, Moncton, St. John and Yarmouth, lost their limited non-stop services to the U.S., nearly all of these markets now have multiple daily connection service to numerous U.S. destinations. The total number of U.S. destinations served from Canada has increased by over 55%. The number of transborder routes have nearly doubled from 90 in 1994 to 171 in The number of air carriers providing transborder air services has also nearly doubled to 20 in A copy of the agreement can be found at united_states_of_america_e.html. This agreement was referred to as the Canada-U.S. Open Skies Agreement at the time, but the U.S. has since defined the term open skies agreement more precisely. The 1995 Canada-U.S. agreement is no longer considered to be an open skies agreement by the U.S. It contains a number of restrictions on air cargo services (prohibitions on certain co-terminalization as well as 5 th and 7 th freedom services) and on passenger 5 th and 6 th freedom services.

5 Tri-Airport Open Skies Initiative Page 2 Average transborder seat capacity per day has increased by about 49%, with an increase in almost all markets with Canada-U.S. services. The following sections provide a detailed comparison of the level of transborder services from Canada, including market profiles. Several elements will be examined including the number of Canadian cities with transborder services, U.S. destinations from Canada, the number of carriers offering transborder services, domestic and transborder seat capacity, and the connectivity of current transborder air services. Data Source and Notes Source of data for this comparison analysis includes the OAG schedules from PLANET and BACK Aviation Solutions. 2 The annual data is based on OAG estimates as of May Note that the comparison tables include non-stop flights only, while the route maps indicate the level of connectivity from each market with transborder services. Annual seat capacity data includes Jetsgo services up to and including March 2005, after which the carrier ceased operations. 2 The Official Airline Guide (OAG) is a database of historical and current airline schedules.

6 Tri-Airport Open Skies Initiative Page Transborder Air Services Canada Canadian Cities with Transborder Services Calgary Charlottetown Dawson City Edmonton Fredericton Halifax Hamilton London Moncton Montreal Ottawa Quebec Regina St. John Thunder Bay Toronto Vancouver Victoria Whitehorse Winnipeg Yarmouth Calgary Campbell River Charlottetown Edmonton Fredericton Ganges Harbour Halifax Hamilton Kamloops Kelowna Kitchener London Montreal Nanaimo Old Crow Ottawa Port McNeil Quebec Regina Saint John s Saskatoon Thunder Bay Total Toronto Vancouver Victoria Whitehorse Winnipeg from Canada Albany Baltimore Bellingham Boston Chicago Cincinnati Cleveland Dallas Dayton Denver Detroit Fairbanks Grand Rapids Hartford Honolulu Houston Indianapolis Juneau Los Angeles Miami Minneapolis Nashville New York Newark Orlando Philadelphia Pittsburgh Port Angeles Portland Rochester Salt Lake City San Francisco San Jose Seattle Spokane Syracuse Tampa Washington Albany Allentown Anchorage Atlanta Baltimore Boston Charlotte Chicago Cincinnati Cleveland Columbus Dallas Denver Detroit Fairbanks Fort Lauderdale Fort Myers Harrisburg Hartford Honolulu Houston Indianapolis Juneau Kahului Kansas City Kenmore Kona Las Vegas Los Angeles Manchester Memphis Miami Milwaukee Minneapolis Nashville New Orleans New York Newark Orlando Palm Springs Total Philadelphia Phoenix Pittsburgh Portland Providence Raleigh/Durham Rochester Salt Lake City San Diego San Francisco San Juan Sarasota Seattle St. Louis St. Petersburg Tampa Washington West Palm Beach Westchester County

7 Tri-Airport Open Skies Initiative Page 4 Number of Transborder Routes from Canadian Cities Number of U.S. Destinations Served Origin City Calgary, AB 9 17 Campbell River, BC 1 Charlottetown, PEI 1 1 Dawson City, YKT 1 Edmonton, AB 3 8 Fredericton, NB 1 1 Ganges Harbour, BC 1 Halifax, NS 2 6 Hamilton, ON 1 3 Kamloops, BC 1 Kelowna, BC 1 Kitchener, ON 1 London, ON 2 1 Moncton, ON 1 Montreal, QB Nanaimo, BC 1 Old Crow, YKT 1 Ottawa, ON 7 12 Port McNeil, BC 1 Quebec, QB 2 4 Regina, SK 1 1 Saint John s, NF 1 Saskatoon, SK 1 St. John, NB 2 Thunder Bay, ON 1 1 Toronto, ON Vancouver, BC 9 24 Victoria, BC 2 4 Whitehorse, YKT 1 1

8 Tri-Airport Open Skies Initiative Page 5 Number of U.S. Destinations Served Origin City Winnipeg, MB 2 5 Yarmouth, NS 1 Total Air Canada Air North Alaska Airlines American Airlines Bearskin Airlines Canadian Airlines Delta Air Lines Midwest Airlines United Airlines US Airways Air Canada Air North Air Transat Alaska Airlines Aloha Airlines America West American Airlines CanJet Airlines Continental Airlines Delta Air Lines Harmony Airways Total Helijet International Kenmore Air Seaplanes Midwest Airlines Skyservice Airlines United Airlines US Airways WestJet Transborder Seat Capacity, 1994 vs Average Seat Capacity Per Day % Change Transborder (one-way) 28,217 41,968 49% Source: Data for above tables from PLANET OAG and BACK OAG schedules data.

9 Tri-Airport Open Skies Initiative Page Transborder Air Services by Market 3 An analysis of the transborder air services in 1994 and 2005 shows that the level of air services (e.g. number of U.S. destinations served from Canadian cities) has increased significantly. As indicated earlier, ten Canadian cities previously not served have gained non-stop services to the U.S., while most Canadian markets that already had transborder services in 1994 have experienced an increase in destinations served. The number of U.S. destinations served have nearly doubled in seven Canadian markets including Calgary, Montreal, Ottawa, Quebec, Toronto, Victoria, and Winnipeg, while the number of transborder destinations served have almost tripled in three Canadian cities including Edmonton, Halifax and Vancouver. The following tables provide a more detailed comparison of the level of transborder air services by market. The number of U.S. destinations served has nearly TRIPLED in three Canadian cities, including Edmonton, Halifax and Vancouver nearly doubled in 7 other cities, including Calgary, Montreal, Ottawa, Quebec, Toronto, Victoria and Winnipeg On the following pages, each city with transborder air service in 1994 and/or 2005 is profiled. The number of destinations and carriers is profiled for each of the two years. As well changes in seat capacity is indicated for both transborder and domestic services. Of the 31 Canadian communities with transborder service in 1994 and/or 2005, 25 enjoyed increased transborder capacity, and 17 had increased domestic capacity. Where domestic seat capacity has been reduced over this 11 year period, the causes are complex, including airline restructuring following the merger of Air Canada and Canadian, the effects of airline restructuring following 9/11, SARS, high government taxes/charges/rents, shifting of traffic patronage between regional airports, improvements in surface transportation and other changes in the industry. Of the 31 markets with transborder service in 1995 and/or 2005, the average increase in domestic capacity was 22% from 1994 to In the minority of markets which experienced reduced domestic seat capacity, the effect was felt by large and small airports alike. E.g., two of the big-8 airports experienced lost capacity. 3 Note that information on specific city markets is based on the Official Airline Guide. If errors or omissions are found, the authors kindly request that updated information be provided to InterVISTAS. 4 We note that the average growth in domestic capacity in Canada was 7%, and for the airports with no transborder service, the average growth was -35%.

10 Tri-Airport Open Skies Initiative Page Transborder Market Profile Calgary, AB (YYC) Chicago Dallas Denver Honolulu Los Angeles Newark Salt Lake City San Francisco Spokane Chicago Dallas Denver Detroit Fort Lauderdale Houston Las Vegas Los Angeles Minneapolis Newark Total 9 17 Orlando Palm Springs Phoenix Salt Lake City San Diego San Francisco Seattle Air Canada American Airlines Canadian Airlines Delta Air Lines United Airlines Air Canada Alaska Airlines America West American Airlines Continental Airlines Delta Air Lines Total 5 9 United Airlines WestJet Average Seat Capacity Per Day % Change Transborder (one-way) 2,310 3,661 58% Domestic (one-way) 9,979 14,491 45%

11 Tri-Airport Open Skies Initiative Page Transborder Market Profile Campbell River, BC (YBL) Seattle (Boeing Field) Total 0 1 Helijet International Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

12 Tri-Airport Open Skies Initiative Page Transborder Market Profile Charlottetown, PEI (YYG) Boston Detroit Total 1 1 Total 1 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % 66 one-stop U.S. destinations beyond Detroit via

13 Tri-Airport Open Skies Initiative Page Transborder Market Profile Dawson City, YKT (YDA) Fairbanks Total 1 0 Air North Total 1 0 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % Route Map of 2005 Transborder Services (includes one-stop connections) Notes: As shown in the route map above, Dawson City s non-stop service to Fairbanks now makes one-stop at Old Crow.

14 Tri-Airport Open Skies Initiative Page Transborder Market Profile Edmonton, AB (YEG) Los Angeles Minneapolis Salt Lake City Chicago Denver Houston Las Vegas Total 3 8 Air Canada Delta Air Lines Alaska Airlines America West Continental Airlines Total 3 5 Los Angeles Minneapolis Phoenix Seattle United Airlines Average Seat Capacity Per Day % Change Transborder (one-way) 414 1, % Domestic (one-way) 5,372 8,148 52%

15 Tri-Airport Open Skies Initiative Page Transborder Market Profile Fredericton, NB (YFC) Boston Boston Total 1 1 Delta Air Lines Total 1 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % 18 one-stop U.S. destinations beyond Boston via Delta Air Lines

16 Tri-Airport Open Skies Initiative Page Transborder Market Profile Ganges Harbour, BC (YGG) Seattle Total 0 1 Kenmore Air Seaplanes Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

17 Tri-Airport Open Skies Initiative Page Transborder Market Profile Halifax, NS (YHZ) Boston Newark Boston Detroit New York Total 2 6 Air Canada Air Canada American Airlines CanJet Airlines Total 1 6 Newark Orlando St. Petersburg Continental Airlines Delta Air Lines Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 5,752 5,507-4%

18 Tri-Airport Open Skies Initiative Page Transborder Market Profile Hamilton, ON (YHM) Pittsburgh Newark Orlando St. Petersburg Total 1 3 U.S. Airways CanJet Airlines Continental Airlines Total 1 2 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) ,871%

19 Tri-Airport Open Skies Initiative Page Transborder Market Profile Kamloops, BC (YKA) Seattle Total 0 1 Alaska Airlines (Horizon Air) Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % 5 26 one-stop U.S. destinations beyond Seattle via Alaska Airlines 5 Kamloops transborder services are operated during the winter/spring season only to accommodate the winter ski season.

20 Tri-Airport Open Skies Initiative Page Transborder Market Profile Kelowna, BC (YLW) Seattle Total 0 1 Alaska Airlines (Horizon Air) Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 801 2, % 55 one-stop U.S. destinations beyond Seattle via Alaska Airlines

21 Tri-Airport Open Skies Initiative Page Transborder Market Profile Kitchener, ON (YKF) Detroit Total 0 1 Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) N/A 117 one-stop U.S. destinations beyond Detroit via

22 Tri-Airport Open Skies Initiative Page Transborder Market Profile London, ON (YXU) Detroit Pittsburgh Total 2 1 Detroit U.S. Airways Total 2 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % 122 one-stop U.S. destinations beyond Detroit via

23 Tri-Airport Open Skies Initiative Page Transborder Market Profile Moncton, ON (YQM) Boston Total 1 0 Delta Air Lines Total 2 0 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 973 1,082 11% Notes: Currently Moncton has no non-stop services to the U.S. However, the city does have one-stop connecting service to 41 U.S. destinations via Halifax, Montreal and Toronto.

24 Tri-Airport Open Skies Initiative Page Transborder Market Profile Montreal, QB (YUL) Baltimore Boston Chicago Cincinnati Detroit Hartford Los Angeles Miami New York Newark Philadelphia Pittsburgh Syracuse Tampa Albany Atlanta Boston Chicago Cincinnati Cleveland Dallas Detroit Fort Lauderdale Fort Myers Hartford Las Vegas Los Angeles Miami Total Minneapolis New York Newark Orlando Philadelphia San Francisco San Juan Tampa Washington West Palm Beach Air Canada American Airlines Delta Air Lines US Airways Air Canada Air Transat American Airlines CanJet Airlines Continental Airlines Total 5 9 Delta Air Lines United Airlines US Airways Average Seat Capacity Per Day % Change Transborder (one-way) 5,411 6,277 16% Domestic (one-way) 10,015 9,950-1%

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26 Tri-Airport Open Skies Initiative Page Transborder Market Profile Nanaimo, BC (YCD) Kenmore Air Harbour Total 0 1 Kenmore Air Seaplanes Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

27 Tri-Airport Open Skies Initiative Page Transborder Market Profile Old Crow, YKT (YOC) Fairbanks Total 0 1 Air North Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

28 Tri-Airport Open Skies Initiative Page Transborder Market Profile Ottawa, ON (YOW) Albany Baltimore Boston New York Newark Pittsburgh Syracuse Albany Atlanta Boston Chicago Detroit Fort Lauderdale New York Newark Total 7 12 Orlando Philadelphia Sarasota Washington Air Canada Delta Air Lines US Airways Air Canada American Airlines CanJet Airlines Continental Airlines Total 3 8 Average Seat Capacity Per Day % Change Transborder (one-way) 846 1,621 92% Domestic (one-way) 6,162 6,413 4% Delta Air Lines United Airlines US Airways

29 Tri-Airport Open Skies Initiative Page Transborder Market Profile Port McNeil, BC (YMP) Kenmore Air Harbour Total 0 1 Kenmore Air Seaplanes Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

30 Tri-Airport Open Skies Initiative Page Transborder Market Profile Quebec, QB (YQB) Boston Newark Boston Detroit Fort Lauderdale Newark Total 2 4 Air Canada Delta Air Lines Air Canada Air Transat Continental Airlines Total 3 4 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,877 1,707-9%

31 Tri-Airport Open Skies Initiative Page Transborder Market Profile Regina, SK (YQR) Minneapolis Minneapolis Total 1 1 Canadian Airlines Total 1 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,720 1,503-13% 125 one-stop U.S. destinations beyond Minneapolis via

32 Tri-Airport Open Skies Initiative Page Transborder Market Profile Saint John s, NF (YYT) Newark Total 0 1 Continental Airlines Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,292 2,217 72% 58 one-stop U.S. destinations beyond New York via Continental Airlines

33 Tri-Airport Open Skies Initiative Page Transborder Market Profile Saskatoon, SK (YXE) Minneapolis Total 0 1 Total 0 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,721 1, % 124 one-stop U.S. destinations beyond Minneapolis via

34 Tri-Airport Open Skies Initiative Page Transborder Market Profile St. John, NB (YSJ) Boston Newark Total 2 0 Air Canada Canadian Airlines Total 3 0 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1, % Notes: Currently St. John does not have non-stop services to the U.S. However, the city does have one-stop connecting service to 39 U.S. destinations via Halifax, Montreal and Toronto.

35 Tri-Airport Open Skies Initiative Page Transborder Market Profile Thunder Bay, ON (YQT) Minneapolis Minneapolis Total 1 1 Bearskin Airlines Total 2 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,099 1,051-4% 135 one-stop U.S. destinations beyond Minneapolis via

36 Tri-Airport Open Skies Initiative Page Transborder Market Profile Toronto, ON (YYZ) Albany Baltimore Boston Chicago Cincinnati Cleveland Dallas Dayton Detroit Grand Rapids Hartford Honolulu Houston Indianapolis Los Angeles Miami Nashville New York Newark Orlando Philadelphia Pittsburgh Rochester San Francisco Syracuse Tampa Washington Albany Allentown Atlanta Baltimore Boston Charlotte Chicago Cincinnati Cleveland Columbus Dallas Denver Detroit Fort Lauderdale Fort Myers Harrisburg Hartford Houston Indianapolis Kansas City Las Vegas Los Angeles Manchester Memphis Miami Milwaukee Minneapolis Nashville Total Air Canada American Airlines Canadian Airlines Delta Air Lines Midwest Airlines United Airlines US Airways Air Canada Air Transat America West American Airlines CanJet Airlines New Orleans New York Newark Orlando Philadelphia Phoenix Pittsburgh Providence Raleigh/Durham Rochester San Francisco San Juan Sarasota Seattle Continental Airlines Delta Air Lines Midwest Airlines Skyservices Airlines Total 8 13 St. Louis St. Petersburg Tampa Washington West Palm Beach Westchester County United Airlines US Airways WestJet Average Seat Capacity Per Day % Change Transborder (one-way) 12,641 18,354 45% Domestic (one-way) 20,455 25,265 24%

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38 Tri-Airport Open Skies Initiative Page Transborder Market Profile Vancouver, BC (YVR) Bellingham Chicago Honolulu Los Angeles Portland San Francisco San Jose Seattle Spokane Anchorage Atlanta Boston Chicago Dallas Denver Detroit Honolulu Houston Kahului Kona Las Vegas Total 9 24 Air Canada Alaska Airlines American Airlines Canadian Airlines Delta Air Lines United Airlines Air Canada Alaska Airlines Aloha Airlines America West Los Angeles Memphis Minneapolis New York Newark Palm Springs American Airlines Continental Airlines Delta Air Lines Harmony Airways Total 7 11 Phoenix Portland Salt Lake City San Diego San Francisco Seattle United Airlines WestJet Average Seat Capacity Per Day % Change Transborder (one-way) 4,658 7,822 68% Domestic (one-way) 12,261 16,374 34%

39 Tri-Airport Open Skies Initiative Page 36 Notes: Annual data based on OAG estimates as of May Table includes non-stop services only.

40 Tri-Airport Open Skies Initiative Page Transborder Market Profile Victoria, BC (YYJ) Bellingham Port Angeles Honolulu Kenmore Air Harbour Las Vegas Seattle Total 2 4 Alaska Airlines Alaska Airlines Harmony Airways Kenmore Air Seaplanes Total 1 3 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 1,890 2,799 48% Route Map of 2005 Transborder Services6 (non-stops only) 57 one-stop U.S. destinations beyond Seattle via Alaska Airlines 6 Victoria s non-stop services to Honolulu and Las Vegas are operated during the spring/winter season only.

41 Tri-Airport Open Skies Initiative Page Transborder Market Profile Whitehorse, YKT (YXY) Juneau Juneau Total 1 1 Air North Air North Total 1 1 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) %

42 Tri-Airport Open Skies Initiative Page Transborder Market Profile Winnipeg, MB (YWG) Chicago Minneapolis Chicago Denver Detroit Minneapolis Orlando Total 2 5 Air Canada CanJet Airlines United Airlines Total 2 3 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) 4,524 5,803 28%

43 Tri-Airport Open Skies Initiative Page Transborder Market Profile Yarmouth, NS (YQI) Boston Total 1 0 Air Canada Total 1 0 Average Seat Capacity Per Day % Change Transborder (one-way) % Domestic (one-way) % Notes: Currently, Yarmouth Airport does not have any scheduled domestic or transborder air services. However, the airport does receive private charter services operated by Provincial Airlines, Maritime Air, Prince Edward Air and Atlantic Charter. As well, Scotia Prince Cruises now provides seasonal ferry services between Yarmouth and Portland, Maine.

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