Greater Air Access Important to Economic Growth

Premier John Hamm has asked Transportation and Public Works Minister Ron Russell to lead a renewed provincial response to air access issues. The initiative comes after Air Canada's recent decision to terminate its service between Halifax and Newark, N.J.

"Air Canada's decision to terminate direct service between Newark and Halifax poses a significant economic problem for Nova Scotia and the Atlantic region," said the premier. "This region's trade, tourism and business sectors depend on reliable transportation links, including air. Any weakening of these links, diminishes our capacity to compete effectively. In an increasingly globalized marketplace, Nova Scotia and the Atlantic region cannot afford less access to our trading partners."

Mr. Russell will convey the government's concerns around capacity and competition in a letter to federal Transport Minister David Collenette. He will also be requesting a meeting with Air Canada officials to discuss the company's future plans for Nova Scotia.

"Given the importance of air transportation links to Nova Scotia's economy, we need to know what their plans are so we can assess their impact on our own economic development initiatives," added the premier.

Premier Hamm already raised Nova Scotia air access issues before the Canadian Transportation Act review panel in November 2000 and at the annual premiers' conference earlier this month.

Economic Development Minister Gordon Balser and Tourism and Culture Minister Rodney MacDonald will also maintain ongoing communication with their stakeholders to determine the impact Air Canada's abandonment of this route will have on their businesses.

Air Canada's decision to eliminate the Halifax-Newark route takes effect Oct. 14, leaving Continental Airlines as the only carrier offering daily service on this route.

Mr. Russell noted that Nova Scotia and the Atlantic region have serious air access and capacity problems, particularly in light of the airline merger and subsequent reductions in service.

"Given the federal government's authority over air policy in Canada, it's long since time to meaningfully address these issues," said the minister. "As regulator of the airline industry, Ottawa has a responsibility to ensure that its policies reflect the needs and interests of the regions and individual Canadians alike. Moreover, Air Canada must also recognize its responsibilities to all Canadians, including Atlantic Canadians."

Industry stakeholders welcomed the province's support.

"Our organization had been very pro-active in this area and support the provincial government's voice at the federal level," said Karl Webb, president of the Tourism Industry Association of Nova Scotia. "We are also encouraging stakeholders to come together to ensure a focused approach on solutions."