CANADA: Expands air travel agreement with Australia

At ICAN 2024, held in Kuala Lumpur, Malaysia, in October 2024, Anita Anand, the Canadian President of the Treasury Board and Minister of Transport, announced an expanded agreement for air travel between Australia and Canada.

The new air services agreement provides for unlimited direct passenger and cargo flights between Australia and Canada. The agreement also includes access to any point in either country’s territory.

“We are pleased to enhance our strong relationship with Australia, one of our most important markets. This expanded air transport agreement will improve connectivity for passengers, deepen our cultural and commercial ties, and strengthen our supply chains. This is great news for travellers and businesses in both our countries.”

The Honourable Anita Anand, President of the Treasury Board and Minister of Transport

Background

Australia ranks 18th in terms of Canada’s air traffic market, representing 534,075 one-way passenger trips in 2023.

The Canadian ‘Blue Sky‘ aviation policy encourages competition and development of international air services and has agreements covering 125 countries.

Theoretically, this could allow unlimited flights between Australia and Canada. Australian airlines, which means Qantas, are our only Australian-based international long-haul flyer at the moment. That is until Virgin Australia gains approval for its arrangement with Qatar Airways.

Qantas partners with WestJet in Canada. Westjet does fly internationally, but only to the Americas. Air Canada, a member of the Star Alliance network, is effectively a competitor to Westjet.

Air Canada currently flies into Sydney and Melbourne from Vancouver but abandoned flights to Melbourne during the pandemic. Virgin Australia partners with Air Canada.

Qantas only flies directly from Sydney to Vancouver. However, indirect flights can be taken from any port in Australia and onward to Canadian destinations via a partnership with Westjet, American Airlines, and Alaska Airlines.

2PAXfly Takeout

In the short term, not much is likely to change. In the longer term, it might mean that both Qantas and Air Canada cover more destinations in both countries. Although additional frequencies might affect airfares, the entry of additional competitors to the Australia/Canada routes will truly put downward pressure on airfares between the two countries.

Neither country is a top-ranking destination for the other. However, Tourism Australia rates Canada as a key market, so any increase in flights or competitors is likely to occur very slowly!

More flights mean more competition, which could cause some downward pressure on airfares between Australia and Canada.

I was due to fly to Vancouver in Qantas Business Class on a Boeing 787 Dreamliner in October 2024, but I contracted COVID-19 and was unable to go. It’s a pity, as it would have been my first trip to Vancouver, and I had a connection on Westjet and an upgrade to First Class on the Qantas A380 out of LAX.

Shit happens!