Province disappointed with reduction in Air Canada service

Tom Lush, Chair of the provincial government cabinet committee on air access, aerospace and the military, expressed great disappointment today at Air Canada�s announcement that it is discontinuing its domestic air service on several routes in Newfoundland and Labrador effective January 2003. The announcement came as a shock as the government learned that routes affecting Stephenville, Deer Lake, Goose Bay, Wabush and St. John�s would be affected.

"It is unfortunate that Air Canada has decided to cut service in many of the smaller communities in our province. An announcement like this one today is a real let-down to our people, and to those who work in our smaller airports," said Minister Lush.

Minister Lush said that a large part of the problem which challenges Air Canada is the lack of progressive policy for the air industry. "The federal government must improve its current legislation and work with the airline industry to ensure a sustainable level of air service to the more rural and remote parts of our country. Essential services are part of modern-day thinking."

A new and innovative federal air policy agreement with airlines is needed to address transportation issues which are currently challenging our country�s remote areas. "This is precisely what the Government of Newfoundland and Labrador has been lobbying the federal government on for years now," said Minister Lush.

"This is disappointing, but we will continue to work with our two provincial carriers - Provincial Airlines and Air Labrador- to address domestic air travel. We encourage our local airlines to consider any potential available to them to cover these routes in the future."

Minister Lush also said he will lead a delegation from Newfoundland and Labrador in a meeting with federal transportation minister David Collenette in the near future to discuss the air transportation issues facing Newfoundland and Labrador. The issue will likely be a top priority at a meeting of transportation ministers later this month in Winnipeg.

Media contact: Janice Lockyer, Director of Communications, 729-1537.

2002 09 06                4:35 p.m.