Canada stands to reap $480-million in annual economic benefits by approving Emirates Airline's plan to expand its Toronto flights and introduce service to Calgary and Vancouver, according to a study commissioned by the Dubai-based carrier.
More than 2,800 direct and spinoff jobs could be generated if Ottawa lifts restrictions that currently limit Emirates to flying three times a week between Toronto and Dubai in the United Arab Emirates, said the analysis by InterVistas Consulting Inc.
The report riled Air Canada and its supporters. "This is part and parcel of Emirates' aggressive tactics to force Canada into a one-sided air services agreement. The UAE already enjoys access to Canada which far exceeds the traffic between both countries," Air Canada spokesman Peter Fitzpatrick said yesterday.
But Andrew Parker, Emirates senior vice-president of international affairs, said Air Canada and its Star Alliance partner, Germany's Deutsche Lufthansa AG, are unnecessarily worried about losing passengers to Emirates.
Emirates' Toronto-Dubai flights have been more than 90-per-cent full, even after switching to the double-decker Airbus A380 on the route last June, Mr. Parker said in an interview, after appearing on a webcast yesterday from the Vancouver 2010 Winter Olympics with B.C. Transportation Minister Shirley Bond.
Provincial governments in British Columbia, Alberta and Ontario support Emirates' campaign for greater access in Canada.
The study by Vancouver-based InterVistas argues that Emirates' expansion in Canada would have a "low" impact on Air Canada's international traffic.
Emirates offers connecting flights from its Dubai hub to Asia, Africa and other destinations, but InterVistas noted that Air Canada does not operate non-stop flights to Dubai, relying instead on partners in Europe to serve a variety of global destinations.
Emirates wants to increase its Toronto-Dubai service initially to daily flights and then twice daily. The airline also hopes to launch the Vancouver-Dubai and Calgary-Dubai routes, perhaps three times a week to start and then daily service. Another carrier, Etihad Airways, currently flies three times a week between Toronto and Abu Dhabi.
Transport Canada spokesman Patrick Charette said current capacity supplied by Emirates and Etihad exceed travel demand, so there isn't any seat shortage.
"Officials continuously monitor the Canada-UAE market to ensure it is not underserved, as this would not be in the commercial interest of either country," Mr. Charette said. "The rights under the current Canada-UAE air transport agreement meet the market demands of travellers whose origin or final destination is either Canada or the UAE."
Captain Paul Strachan, president of the Air Canada Pilots Association, said Emirates is playing down its true ambition of wooing customers in Toronto, Calgary and Vancouver to travel to places other than Dubai. Emirates is trying to funnel foreign travellers connecting through its Dubai hub, which serves as the entry point into Canada, he said.
"Quite frankly, Emirates wants to dump new seat capacity into established markets and poach traffic," Capt. Strachan said. He disputed Emirates' assertion that increased flights will provide economic stimulus to Canada and accused Emirates of taking aim at lucrative international traffic at Air Canada.
Emirates, owned by the Dubai government, "has a tactic to break into markets and expand aggressively, but free trade in aviation has to be fair trade. In this instance, it's a lopsided proposal by Emirates," Capt. Strachan said.
With Dubai hurt by the economic downturn, there isn't a compelling reason for Ottawa to approve new Emirates flights, industry observers say.
"We believe the Canadian government knows best what is beneficial for their country and certainly does not need any advice from Lufthansa," said Lufthansa spokesman Martin Riecken.
Brent Jang