Jun. 20, 2004. 01:00 AM
Tories float Air Canada plan
Ready to lift bilingualism requirement

Would `level playing field,' party says
ROBERT BENZIE
QUEEN'S PARK BUREAU

SAINT JOHN, N.B.—Conservative Leader Stephen Harper would change federal legislation to allow Air Canada to move its head office from Montreal to Toronto, party officials confirmed last night.

Harper is prepared to scrap the Air Canada Public Participation Act, which would allow the national carrier to no longer be forced to provide more bilingual services than other competing airlines.

"We're talking about a level playing field," said Jim Armour, the Conservative Party of Canada's communication director. "Right now there are requirements that only apply to one (airline). It doesn't apply to WestJet, it doesn't apply to JetsGo.

"We have said that the act should be eliminated. That doesn't mean that bilingualism requirements would be eliminated on airlines," Armour said. "What we are saying is that bilingualism requirements should apply equally across the industry."

James Moore, the Conservative transportation critic who is seeking re-election in British Columbia, told the Star that change would mean Air Canada could move its headquarters anywhere it chose.

"Air Canada has no intention of moving its headquarters from downtown Montreal," Moore said. "But they could move if they want. Where they have their head office is their own business."

Since Air Canada was privatized in the late 1980s, the money-losing airline has been forced by law to have its headquarters in Montreal, and its maintenance facilities spread out across the country regardless of the economic viability. The airline was also required to have bilingual air crews, while its competitors can use taped information messages in French.

The Conservative move, which is not in its election platform, was revealed yesterday by the Canadian Press.

Harper has faced controversy on bilingualism since the Conservative languages critic, Scott Reid, mused earlier in the campaign about a possible revamp of bilingual services. Reid later resigned his position as critic.

Harper said he would not change the basic principles of the Official Languages Act, but said a Conservative government would debate the question.

Bloc Québécois MP Benoit Sauvageau said abolishing the Air Canada Public Participation Act would be "really catastrophic."

While the Liberal government had suggested it would consider easing some of the regulatory restrictions facing the airline, Pierre Pettigrew, official languages minister, said the Liberals stand by the act.

With files from Canadian Press
Copyright Toronto Star Newspapers Limited. All rights reserved.
Carrier can fly free - Tories
Would eliminate act. Air Canada could leave Montreal, be bilingual only where warranted

ROBERT FIFE
CanWest News Service; Canadian Press contributed to this report
June 20, 2004

Conservative leader Stephen Harper is prepared to change the law to allow Air Canada to move its headquarters from Montreal to anywhere in the country, and to provide bilingual services on the national airline only where numbers warrant.

A Harper-led government would feel that Air Canada, which is in bankruptcy protection, needs to have the tools to be competitive in the cutthroat airline industry, Conservative spokesperson Jim Armour said late last night.

Armour said a Conservative government would eliminate the Air Canada Public Participation Act, which requires the national airline to be based in Montreal and to provide fully bilingual staff on all its flights.

Conservatives oppose the act, which was passed shortly before the airline was privatized in 1988.

Such other airlines as WestJet and CanJet do provide bilingual services, but not all of their staff are required to be bilingual.

Armour said, "The act should be eliminated, but that does not mean bilingual requirements in the national airline should be eliminated.

"But there should be a level playing field when it comes to bilingual requirements."

He said where numbers warrant, fully bilingual services should be offered on Air Canada flights as they are by their competitors.
Armour also said Air Canada should be able to move its headquarters to any city in Canada if it wishes, but "that would be up to Air Canada to decide ... that move would be up to them. It would not be legislated by the government."

Armour said Air Canada has long been concerned about being treated differently from other airlines.

He said it had asked the Conservative Party for its policy position regarding Canada's airline industry.

A letter, written June 9 and signed by Craig Maguire, a member of Harper's staff, responded to a question about the future of the airline.

The letter, obtained by Canadian Press, indicates a Conservative government would aim to "create a competitive environment in the airline industry and leave airlines alone in their fight to attract customers."

The struggling airline has been clawing at the brink of bankruptcy for the last year.

Had it not been for an 11th-hour deal with its unions last month, it had faced the possibility that Deutsche Bank and GE Capital Aviation Services would pull their support.

The German bank is to underwrite an $850-million equity offering to the airline's creditors, while GE is to provide $1.5 billion U.S. in financing and restructure leases on more than 100 aircraft.
Both companies have said they hope Air Canada would be subjected to "the same rules of the game concerning regulations" as their competitors.

The Air Canada Public Participation Act is perceived as a ball and chain by Air Canada, the only airline affected by the regulations.
While the Liberal government had suggested it would consider easing some of the regulatory restrictions facing the airline,

Pierre Pettigrew, minister responsible for official languages, said yesterday that the Liberals stand by the act.
Pettigrew said Harper hasn't been forthcoming with his intentions regarding official languages.

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