Ready for take-off

One is the high price of fuel. Jets consume a tremendous amount of it, and carriers worldwide are starting to feel the crunch. Recent data released by the International Air Transport Association (IATA) showed the first decline in international air cargo freight traffic since 2005, with much of the blame pinned on expensive oil.

The high Canadian dollar is another obstacle. Some, including Clarke, feel this is more of a problem than fuel prices, particularly for traffic between Canada and the US.

“If our Canadian dollar is hovering around 90 or 92 cents to [the US] dollar, then it’s a comfortable spot for cargo here. If it’s on par, there’s really no advantage.”

Shippers who rely on airfreight are watching these developments with a close eye. Scott Gibson, logistics project manager at AstraZeneca Canada, is one of them. Airfreight has long been the company’s preferred mode for shipping high-value pharmaceuticals in from overseas markets. He would love to see Canada open its air channels—and the competitive rates and alternate avenues of import that would ensue—but is prepared if it does not happen.

“We’re quite concerned about capacity, in terms of making sure there are enough cargo airplanes coming into Canada,” he says.

“If we can’t get the flights, we’ll have to look at other options.”

Blue skies ahead?
Given the issues at play, it seems it may be some time before Canada becomes the preferred destination for international carriers. But the obstacles are not insurmountable. The federal government is reporting that negotiations for an EU-wide open skies deal are progressing. The Canadian dollar has settled a bit below par (for the time being, at least). And those pushing for liberalized skies in the True North are committed to making it happen.

Says Facette: “I think if we really spent the time focusing on what needs to be done…and if we properly position it with the federal policy-makers, long-term we could really take cargo’s potential in Canada quite a bit further than it is today.”