PROPOSED FEDERAL AIR POLICY RAPPED - - - 'Don't Divide Canada at Winnipeg'--Uskiw

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PROPOSED FEDERAL AIR POLICY RAPPED - - - 'Don't Divide Canada at Winnipeg'--Uskiw

MANIT = =BA INFORMATION SERVICES BRANCH ROOM 29, LEGISLATIVE BUILDING NEWS WINNIPEG, MANITOBA R3C 0V8 PHONE: (204) 944-3746 DATE: February 19, 1982 SERVIIIE PROPOSED FEDERAL AIR POLICY RAPPED - - - 'Don't Divide Canada At Winnipeg'--Uskiw OTTAWA, (Special)--The federal government's proposed domestic air policy should not separate Canada at Winnipeg into eastern and western regions, Manitoba Highways and Transportation Minister Sam Uskiw told the federal Parliament's Standing Committee on Transportation here Thursday (February 18). The federal policy proposes that a regional carrier boundary be drawn on a line from Winnipeg to Resolute Bay. Except for its service between Brandon and Toronto, PWA would be able to operate only west of this line. Eastern Provincial Airlines, Nordair and Quebecair are to be free to serve the rest of Canada. "This artificial boundary harms Manitoba in a number of ways," Mr. Uskiw said. "It places Gillam and Churchill in the eastern region served by Eastern Provincial Airlines, Nordair and Quebecair. It also separates Winnipeg from its traditional markets in the Keewatin District and, by prohibiting PWA from flying east from Winnipeg, eliminates the incentive for other air carriers to develop lower through fares from Northern Manitoba to Eastern Canada. "A regional boundary should be one that makes sense. Toronto is served by all four regional carriers. For this reason alone, Toronto would be the most logical point to divide the eastern and western regions. This would not make the western regional carrier a transcontinental operation as the nation of Canada extends far to the east of Toronto. "Manitoba is vitally concerned with the stability of the smaller air carriers serving the public living in the Precambrian areas of Canada. It is just as critical for smaller air carriers serving small, weaker markets to be able to undertake long range planning and equipment acquisition programs as it is for national and regional air carriers." Mr. Uskiw explained that the cost of a six-seat Cessna 206 would amount to about 10.2 per cent of the average small carrier's invested capital. "This is comparable in impact to a regional air carrier's purchase of a $15 million 117-seat jet aircraft." -more- -2- PROPOSED FEDERAL The proposed domestic air policy would allow air carriers other than Air Canada, CP Air and the four regional air carriers to apply to serve any market with any sized aircraft they wish. "The result," Mr. Uskiw said, "is that Manitoba could be in for a period of far greater instability than exists at the present time. For this reason, Manitoba requests a more definitive policy statement for the smaller air carriers and simplified procedures for processing applications to the Air Transport Committee." -30- .

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