Secondly, the agreement provides for seventh freedom rights that allow air carriers to operate air transport services that are completely distinct between the partner`s territory and abroad, and in particular without the necessary connection to the airline`s country of origin. This provision is expected to benefit U.S. freight carriers the most, which will be able to leverage their economic efficiency gains to enter the Canadian international freight market. It is also possible that the Canadian subsidiaries of major U.S. airlines may be subjugated and restructured by their parent companies to focus exclusively on inland shipping routes. The United States has made open skis with more than 100 partners from all regions of the world and at all levels of economic development. In addition to the bilateral open skies agreements, the United States negotiated two multilateral open skies agreements: (1) the 2001 Multilateral Agreement on the Liberalization of International Air Transport (MALIAT) with New Zealand, Singapore, Brunei and Chile, to which Samoa, Tonga and Mongolia subsequently joined; and (2) the 2007 Air Services Agreement with the European Community and its 27 Member States. Later, US President Donald Trump said there was a “very good chance that we will reach a new agreement” with Russia. While operators and consumers may welcome the growing liberalization of the north American airline industry, it is important to recognize the shortcomings of the agreement.
There is no doubt that the agreement gives airlines the opportunity to access foreign markets. However, airlines must continue to have access to airport gates and landing sites at U.S. airports before Canadian operators can enjoy one of the key benefits of the agreement. In addition, some foreign jurisdictions do not allow airlines to carry traffic from different countries. New bilateral agreements must be negotiated with each of these countries before Canada can take full advantage of the new freedoms granted to it. There are many other ways to achieve further liberalization, namely in the area of cabotage and foreign ownership. The new agreement was born out of a period of turbulence for Canada`s airline industry, which is strongly linked to events such as: “We refuse any attempt to justify a way out of this fundamental agreement,” Russian Deputy Foreign Minister Alexander Grozchko told Russian state news agency RIA Novosti. Each contracting party may, at any time, communicate in writing to the other party its decision to denounce this agreement. This notification is sent simultaneously to the International Civil Aviation Organization. This agreement expires at midnight (at the receipt of the notification to the other party) just before the first anniversary of the receipt of the notification by the other party, unless the notice is revoked with the agreement of the contracting parties before the expiry of that period. In the absence of an acknowledgement by the other party, the notification is deemed to be fourteen (14) days after receiving the notification by the International Civil Aviation Organization.