Neha Jain: http://canadaaviationnews.blogspot.com/31

<div class="photo-text text">Star Alliance has added Air Canada and US Airways to its Upgrade Award program</div>

1. Canada's user-pay system fairer than U.S. airport subsidies

Canada has chosen a different economic model for its air travel industry than that of the U.S. In Canada, the user-pay system is applied and taxpayers do not support the industry through general revenues.

Starting in the late 1980s, Canada commercialized its airports and air navigation system (both not-for-profit organizations now) and deregulated the domestic market to promote efficiency of these entities and ensure they better met their stakeholder needs. Also, Canada's air carriers are private companies.

The government believes these decisions have been the right ones. Our airports are relatively congestion-free, many have won awards for customer satisfaction, and the Canadian Air Navigation Services provider (Nav Canada) is considered a world-class model that has also won international awards.

Our air carrier industry is getting stronger and, as proof, has weathered many recent socio-economic crises. Finally, despite recent challenging economic times, passenger traffic in Canada is increasing.

On many flights, the majority of taxes and surcharges are imposed by airlines and other non-government entities, along with the U.S. government. The only charges imposed by the Canadian federal government are the goods and services/ harmonized sales taxes, the air travellers security charge, fuel excise tax (on domestic flights only) and airport rent, which account for a very small percentage of the cost of a ticket.

As for the various airline-imposed charges, this is now the industry norm and is not unique to Canada. In addition, airport improvement fees are becoming more prevalent internationally. Airlines have battled through tough times for the past 10 years and are now trying to remain viable through a variety of pricing strategies, as would any corporation.

It is worth pointing out that there is more to a passenger's decision on which airport to use than just cost. There is also convenience and choice of routes. Many Canadians live closer to U.S. airports than they do to Canadian airports. These U.S. airports are served by low-cost carriers that choose to access smaller U.S. airports.

In addition, our relatively strong dollar has lowered the cost of buying air services in the U.S. for Canadians.

Comparing the Canadian and U.S. systems requires caution, as market size and the respective roles of governments also differ significantly. A sizable portion of the U.S. system relies on support from all levels of government.

Most airports are state or municipally operated. General tax revenues are also regularly used to help fund aviation security and air navigation services, which places a greater burden on the taxpayer.

Despite this greater level of government support, the U.S. infrastructure and air navigation system are falling behind, U.S. airlines regularly seek bankruptcy protection and there are significant congestion delays throughout the system.

We are committed to helping maintain competitiveness in the Canadian air industry and actively monitor concerns.

Chuck Strahl is the federal minister of Transport, Infrastructure and Communities.

2. Star Alliance adds upgrade awards for Air Canada, US Airways

Members of Star Alliance partners – including Air New Zealand, Singapore Airlines, United and Asiana – can now trade their points for upgrades on flights with Air Canada and US Airways.
Although already members of Star Alliance, the Canadian and US carriers had yet to sign up to the Upgrade Awards program which allows members of other Star Alliance airlines to trade their points in for an upgrade when travelling on an Air Canada or US Airways flight.
Upgrades are permitted for one class of travel, either from economy class to business class or from business class to first class (if first is available on that flight), although upgrades from some heavily-discounted fares are not permitted.
No mention is made of premium economy, which is an increasingly popular cabin class among airlines, so if you're flying economy on a Star partner which also offers a premium economy cabin you should check with the airline about your upgrade award options.
"Our frequent flyers have always told us that upgrading using miles across the entire alliance is one of the highest sought after benefits" said Star Alliance vice-president Christopher Korenke. "We are working on getting the remaining Star Alliance member carriers into the product as soon as possible."
Frequent flyers have often been frustrated by the inability to use one airline's points to upgrade when flying on another airline belonging to the same alliance.
For example, no matter how many Qantas Frequent Flyer points you have or how high your status is, you can't use your Qantas points to upgrade a ticket on a British Airways flight – despite the fact that both belong to the same OneWorld alliance, and even if your BA flight is codeshared with Qantas.
In other words: you buy a BA economy seat and you're stuck with it, whereas on most Star Alliance airlines you can now bump up one class depending on seat availability.

3.Canadian airline to begin JWA nonstop service

Canadian low-cost airline WestJet announced Tuesday that it will begin nonstop service from Vancouver and Calgary to John Wayne Airport in May and June, according to a news release from WestJet.

These are the first nonstop international destinations to be added since Air Canada ended its JWA service to and from Toronto in October.

The Orange County Board of Supervisors, which oversees the airport, approved the WestJet flights in December.

4. American Airlines Assists Customers Affected by Weather in Midwest

Due to the anticipated weather impact on the Midwestern United States, American Airlines offers customers the convenience to change their plans. Customers ticketed to travel on American Airlines, American Eagle or AmericanConnection flights to, from or through the airports listed below may change flights as shown without penalty.
If you are traveling to/from/through those cities on Jan. 31-Feb. 2 and your ticket was issued no later than Jan. 30, you may begin travel as late as Feb. 6.
Bloomington/Normal, Ill. (BMI)
Cape Girardeau, Mo. (CGI)
Cedar Rapids, Iowa (CID)
Champaign, Ill. (CMI)
Chicago (ORD)
Des Moines, Iowa (DSM)
Detroit (DTW)
Dubuque, Iowa (DBQ)
Evansville, Ind. (EVV)
Fort Leonard Wood, Mo. (TBN)
Fort Wayne, Ind. (FWA)
Grand Rapids, Mich. (GRR)
Joplin, Mo. (JLN)
Kalamazoo/Battle Creek, Mich. (AZO)
Kansas City, Mo. (MCI)
Kirksville, Mo. (IRK)
Manhattan, Kan. (MHK)
Marion, Ill. (MWA)
Milwaukee (MKE)
Moline/Quad Cities, Ill. (MLI)
Northwest Arkansas, Ark. (XNA)
Oklahoma City, Okla. (OKC)
Peoria, Ill. (PIA)
Quincy, Ill. (UIN)
St. Louis (STL)
Springfield, Ill. (SPI)
Springfield, Mo. (SGF)
Traverse City, Mich. (TVC)
Tulsa (TUL)
Wichita, Kan. (ICT)

One ticket change is allowed with no penalty.
To change travel dates, contact American's Reservations personnel at 1-800-433-7300 within the U.S. or Canada. If you are calling from outside the U.S. or Canada, please check our Worldwide Reservations Numbers page on AA.com.
About American Airlines
American Airlines, American Eagle and AmericanConnection® serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning AA.com® website provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve approximately 750 destinations in nearly 150 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, We know why you fly and AAdvantage are trademarks of American Airlines.

NEHA JAIN

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