CAIR Issue No. 56 - October 2007 by Leah Dupuis

CANADIAN AVIATION INDUSTRY REVIEW

In this issue… Features Columns: • Review of Air Canada’s Total Seat Capacity Fall/Winter 2007/2008 (p.1) • Crude Oil Prices Reach Record High (p.3) • Trusted Traveller Program (p.11) • The Environmental Report (p.13) • The Asia Report (p.14) • The Caribbean Report (p.15) • The Europe Report (p.16) • The Ottawa Report (p.17) • The Washington Report (p.18)

Regular Reports: • Airline Data - Canada (p.4) • Airline Data – U.S. (p.5) • Selected Canadian Airport Data (p.6) • Industry News (p.7) • InterVISTAS News (p.19)

REVIEW OF AIR CANADA’S TOTAL SEAT CAPACITY FALL/WINTER 2007/2008 October 2007

When Air Canada emerged from bankruptcy protection over three years ago, it stated that it would place a stronger focus on international services. In keeping with this objective, international capacity has experienced strong expansion in 2007, growing at a faster rate than domestic capacity. As a result, international capacity currently accounts for a larger portion of total capacity than in the three years prior.

Air Canada’s Total Seat Capacity Alex Welch Project Analyst

Air Canada’s total fall/winter seat capacity has been steadily increasing over the past few years, and currently stands at an estimated 8.9 million seats for the three months ending January 2008. This is up from 8.4 million seats during the three months ending January 2007 and up from 8.2 million seats from the three months ending January 2006. The largest growth rate is observed for the international overseas sector, increasing by 8.0% (close to 69,000 seats) compared to 2007. A large portion on this growth is due to a large increase in the European sector, increasing by 8.4% (close to 32,000 seats). Similarly, the domestic and transborder sectors demonstrated positive growth rates with an increase of 5.0% (close to 306,000 seats) and 6.7% (close to 96,000) respectively. Individual overseas markets which have experienced seat capacity growth versus the same period in the previous year include: Sydney (new service), Shanghai (+74.9%), Beijing (+26.7%), Paris (+20.4%), London (+9.2%), Frankfurt (+9.1%) and Hong Kong (+6.1%). Overseas markets which experienced declines in the period include: Zurich (-39.1%), Havana (-24.7%), Sao Paulo (-20.3%), and Tokyo (-17.1%). Table 1: Air Canada’s Total Seat Capacity (Non-Stop Departures from Canada)* Volume of Total Seat Capacity Absolute Percent Three Three Three Change 2008 Change 2008 Months Months Months vs. 2007 vs. 2007 Ending Ending Ending Three Month Three Month January 2008** January 2007 January 2006 Period Period Destination Canada 6,438,657 6,132,833 5,980,853 305,824 5.0% USA (incl. Hawaii) 1,522,205 1,425,955 1,389,756 96,250 6.7% Asia 201,130 187,754 185,987 13,376 7.1% Australia 17,885 17,885 n/a Europe 406,414 374,888 361,398 31,526 8.4% Latin America 294,180 288,061 273,788 6,119 2.1% Middle East 11,236 11,236 12,720 0.0% International Overseas 930,845 861,939 833,893 68,906 8.0% Grand Total 8,891,707 8,420,727 8,204,502 470,980 5.6% Source: OAG Max September 2007 disk. Notes: * Includes Air Canada mainline and Jazz. ** 2008 figures reflect Air Canada’s planned schedule as of September 2007 as pulled from OAG Max and may change.

Page 1 October 2007

AIR CANADA’S INTERNATIONAL SEAT CAPACITY FALL/WINTER 2007/2008 – CON’T International Overseas Seat Capacity Share For the past three years, Air Canada’s international overseas seat capacity had held relatively constant at just over 10% of total seats for the three month period ended January 31st. Due to planned strong growth for this period in 2008, international overseas share of capacity will increase marginally to 10.5% of total seats. This is largely due to growth in European service and the addition of Australian service.

Latin America 3.3%

Australia 0.2%

Europe 4.6%

Middle East 0.1%

Asia 2.3% United States 17.1%

Canada 72.4%

Table 2: Air Canada’s Seat Capacity Share (NonStop Departures from Canada) Share of Total Seat Capacity Three Months Three Months Three Months Three Months Ending January Ending January Ending January Ending January Destination 2008** 2007 2006 2005 Canada 72.4% 72.8% 72.9% 71.9% USA (incl. Hawaii) 17.1% 16.9% 16.9% 17.8% Asia 2.3% 2.2% 2.3% 2.6% Australia 0.2% Europe 4.6% 4.5% 4.4% 4.2% Latin America 3.3% 3.4% 3.3% 3.3% Middle East 0.1% 0.1% 0.2% 0.2% International Overseas 10.5% 10.2% 10.2% 10.3% Grand Total 100.0% 100.0% 100.0% 100.0% Source: OAG Max September 2007 disk. Notes: * Includes Air Canada mainline and Jazz. ** 2008 figures reflect Air Canada’s planned schedule as of September 2007 as pulled from OAG Max and may change.

Page 2 October 2007

CRUDE OIL PRICES REACH RECORD HIGH - $90 22 October 2007

Crude oil prices rise to $90… Recently, crude oil prices briefly rose to $90 per barrel, the highest price level since the commodity futures market began trading in 1963. Prices have risen steadily in 2007 after reporting a low of $57 in February. However, with the high price levels, crude oil has reverted back to backwardation, where the futures price is lower than the current spot price. Some global factors impacting crude oil prices include Turkey’s potential conflict with Kurds in Iraq and the weakness in the U.S. dollar.

Doris Mak Manager, Special Projects

Turkey’s Potential Conflict with Kurds Turkey and Kurdish rebels are on the brink of war at the Northern Iraq border due to an incident that left 12 Turkish soldiers dead and another 8 missing. Tensions are high in the area and war could impact world oil production in Iraq. War in the area could threaten a pipeline that carries approximately 600,000 barrels of crude oil daily to market. Weakness in the U.S. Dollar General weakness in the U.S. dollar has also contributed to escalating crude oil prices as investors purchased oil on speculation that the U.S. Federal Reserve will cut borrowing costs in a meeting at the end of the month.

... Crude oil futures prices level at $75 in the longterm

Crude Oil Futures Prices $90

$80 Oct 2007 Sep 2007

$70

May 2007 US$ Per Barrel

Nov 2006 $60

Jan 2006 Dec 2005

$50 Apr 2005

Crude Oil Spot Prices

$40

Crude Oil Futures Prices -----

$30 May 2003 Jul-12

Oct-12

Apr-12

Jan-12

Jul-11

Oct-11

Apr-11

Jan-11

Jul-10

Oct-10

Apr-10

Jan-10

Jul-09

Oct-09

Apr-09

Jan-09

Jul-08

Oct-08

Apr-08

Jan-08

Jul-07

Oct-07

Apr-07

Jan-07

Jul-06

Oct-06

Apr-06

Jan-06

Jul-05

Oct-05

Apr-05

Jan-05

Jul-04

Oct-04

Apr-04

Jan-04

Jul-03

Oct-03

Apr-03

$20 Jan-03

Spot Oil prices rise briefly to $90, but futures prices to $75 in 2012.

With crude oil futures prices reverting to backwardation, a price level in the $75 per barrel seems likely in the longer term. However, futures prices are still at a higher level than in reported previously; a contract to purchase crude oil in October 2007 for delivery in December 2012 costs $75.31, 26% higher than if that same contract was purchased in January 2006 at a cost of $59.93.

Month of Delivery

Page 3 October 2007

AIRLINE DATA – CANADA Traffic and Load Factors on Canada’s Major Air Carriers September 2007 Air Carrier

Passenger Traffic Revenue Passenger Kilometres % Change % Change over 2006 from 2005

•

% Change over 2006

% Change from 2005

Change over 2006

Change from 2005

+3.0%

+2.8%

+3.7%

+4.4%

-0.5pts (to 79.1%)

-1.3pts (from 80.4%)

Domestic (Mainline)

+2.3%

-1.8%

+4.2%

+1.4%

-1.4pts

-2.6pts

Jazz

+6.3%

+54.5%

+3.6%

+45.1%

+1.9pts

+4.5pts

International & Charter

+3.3%

+4.6%

+3.5%

+5.6%

-0.1pts

-0.8pts

+17.9%

+46.7%

+12.7%

+32.1%

+3.5pts (to 78.7%)

+7.8pts (from 70.9%)

Analysis:

•

Load Factor

Air Canada1

WestJet

•

Capacity Available Seat Kilometres

September is the second consecutive month in 2007 where Air Canada Mainline’s domestic seat capacity exceeded that of Jazz’s. Air Canada Mainline’s international load factor experienced a slight decline in September 2007 over 2006, due to passenger traffic growth of 3.3% that did not keep up with seat capacity expansion of 3.5%. The “Latin America and Other” region applied the greatest upward pressure on passenger traffic growth in this time period, with passenger volumes increasing by 14.7% over 2006. WestJet reported a load factor of 78.7% in September 2007, up 3.5 percentage points from the same month in the previous year. This is the ninth consecutive month that traffic growth has outpaced capacity increases.

Air Canada Domestic Mainline

10% 8% 6% 4% 2% 0% -2% -4% -6%

Jazz data is not included in this graph Jul06

Aug Sept Oct

Nov

Dec Jan- Feb 07

Dom RPK

Mar

Apr

May Jun

Jul

Aug

Sep

Jul

Aug

Sep

Dom ASK

Air Canada International 6% 5% 4% 3% 2% 1% 0% -1% -2% Jul06

Aug Sept

Oct

Nov

Dec Jan07

Feb

Int'l RPK

Mar

Apr

May Jun

Int'l ASK

WestJet 35% 30% 25% 20% 15% 10% 5% 0% Jul- Aug Sept Oct 06

Nov

Dec Jan- Feb 07

RPK

Mar

Apr

May Jun

Jul

Aug Sep

ASK

Air Canada Mainline consists of all Air Canada operations with the exception of Jazz.

Page 4 October 2007

AIRLINE DATA – U.S. U.S. Airlines Release September 2007 Traffic Figures

Notes:

(RPMs – millions)

(ASMs – millions)

Capacity

Load Factor

1,836 ↑11.8%

2,573 ↑13.7%

71.4% ↓1.2 pts

709 ↑1.8%

1,010 ↑1.0%

70.2% ↑0.5 pts

5,640 ↑8.6%

8,336 ↑7.8%

67.7% ↑0.5 pts

7,289 ↑5.6%

9,231 ↑4.5%

79.0% ↑0.8 pts

9,176 ↓0.8%

11,442 ↓1.7%

80.2% ↑0.7 pts

10,846 ↑2.4%

13,829 ↓1.4%

78.4% ↑2.9 pts

9,785 ↑7.8%

12,608 ↑3.6%

77.6% ↑3.0 pts

6,237 ↑1.1%

7,453 ↓1.7%

83.7% ↑2.3 pts

4,686 ↑2.3%

5,999 ↓4.8%

78.1% ↑5.4 pts

331 ↑11.3%

398 ↓0.2%

83.1% ↑8.6 pts

1,256 ↑32.3%

1,833 ↑19.3%

68.5% ↑6.7 pts

776 ↑26.0%

996 ↑9.4%

77.9% ↑10.3 pts

Traffic

Airline

1. Mainline operations only. 2. Load factor includes scheduled service only.

Sources: Carrier traffic reports.

Page 5 October 2007

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports

2006

Toronto

Vancouver

August

+6.8%

+3.9%

MontréalTrudeau +3.5%

2007

Calgary

Edmonton

Ottawa

Winnipeg

Halifax

Victoria

Kelowna

Saskatoon

Regina

+10.2%

+18.2%

+2.2%

+8.5%

+7.1%

+11.3%

+12.2%

+5.8%

+15.9%

St. John’s +11.7%

September

+2.2%

+2.1%

3rd

+2.6%

+10.0%

+13.1%

0.0%

+8.8%

+4.9%

+6.9%

+16.6%

+6.9%

+10.4%

-0.5%

+3.8%

+3.7%

+2.7%

+9.2%

+15.1%

+0.1%

+7.3%

+6.9%

+8.6%

+14.3%

+6.2%

+11.1%

+8.7%

October

+2.6%

+2.3%

+3.9%

+9.9%

+18.4%

+2.3%

+7.7%

+6.2%

+8.9%

+13.7%

+7.1%

+6.2%

+1.7%

November

+3.9%

+3.7%

+8.6%

+14.1%

+15.4%

+3.0%

+8.3%

+0.6%

+2.7%

+14.5%

+2.7%

+3.7%

+0.2%

December

+6.4%

+6.2%

+8.7%

+11.4

+18.2%

+3.8%

+3.4%

-2.4%

-0.1%

+14.5%

+3.7%

+10.2%

-1.1%

4th

Quarter

+4.3%

+4.1%

+7.0%

+11.7

+17.4%

+3.0%

+6.4%

+1.7%

+3.9%

+14.3%

+4.5%

+6.7%

+0.3%

Full Year January February March 1st Quarter April May June 2nd Quarter July August

+3.5% +3.0% +2.0% +1.5% +2.2% +0.7% +0.3 +1.3% +0.8% -0.4% +0.8%

+3.1% +5.5% +2.7% +3.6% +3.9% +4.2% +2.4% +1.8% +2.7% +0.2% +2.6%

+4.7% +10.2% +7.1% +8.9% +8.7% +8.9% +6.3% +8.6% +7.9% +10.9% +10.4%

+11.1 +11.7% +11.7% +9.5% +10.9% +11.9% +8.6% +7.6% +9.1% +5.4% +7.1%

+15.5% +18.3% +18.3% +17.1% +17.9% +18.8% +17.5% +22.2% +19.5% +17.8% +17.1%

+1.7% +5.9% +8.3% +4.9% +6.3% +8.0% +7.3% +7.6% +7.6% +9.0% +6.6%

+4.8% +3.2% +6.8% +5.4% +5.1% +12.2% +8.7% +7.5% +9.3% +3.9% +5.0%

+4.6% +2.3% +2.0% -1.2% +0.9% +0.5% -2.5% +3.4% +0.4% +4.4% +4.4%

+5.4% +4.7% +4.0% +7.9% +5.6% +9.6% +6.2% +1.9% +5.8% +6.7% +5.4%

+14.7% +15.2% +12.9% +15.6% +14.6% +20.8% +17.8% +14.7% +17.7% +7.4% n/a

+5.6% +6.7% +11.0% +5.7% +7.8% +12.1% +12.7% +11.6% +12.1% +4.6% +9.0%

+8.0% +18.8% +24.2% +8.2% +17.0% +7.4% +9.9% +8.0% +8.4% +13.6% 5.7%

+6.0% +4.6% +10.9% +9.1% +8.1% +2.1% -4.2% -1.0% -1.2% -6.5% -5.8%

Quarter

Source: Transport Canada and individual airports’ traffic reports. N/A: not available at press time. Note: Subject to revision.

Page 6 October 2007

NEWS ARTICLES AIR CANADA UPDATE

WESTJET UPDATE

AIR CANADA INTRODUCES DAILY TORONTO-MADRID SERVICE

WESTJET EXPANDS NETWORK SERVICE TO SUN DESTINATIONS

Air Canada announced plans to offer non-stop service between Toronto and Madrid, Spain, beginning 15 June 2007. Subject to government approval, this route will operate year-round using Boeing 767-300 aircraft, beginning with daily frequency and continuing through the winter with reduced flights.

WestJet announced nonstop seasonal service between Hamilton, Ontario, and the following sun destinations: Nassau (weekly, beginning 15 February 2008), Fort Lauderdale (twice weekly, beginning 16 February 2008), Orlando (twice weekly, beginning 17 February 2008) and Tampa (twice weekly, beginning 18 February 2008). WestJet flies to a total of 19 sun destinations, including recently announced services to Montego Bay (Jamaica), Puerto Plata and Punta Cana (Dominican Republic), Mazatlan (Mexico), Cabo San Lucas (Mexico) and Kona (Hawaii).

AIR CANADA LAUNCHES PAPERLESS BOARDING PASSES FOR MOBILE CHECK-IN CUSTOMERS

Air Canada recently introduced paperless boarding passes for its mobile check-in customers who are travelling to domestic or international (non-U.S.) destinations on Air Canada or Jazz flights. Customers who check in using a personal digital assistant (PDA) or cell phone will have the option of receiving electronic boarding passes in the form of SMS text messages.

AIR CANADA INTRODUCES FLIGHT PASSES TO HONG KONG AND CHINA Air Canada recently introduced the ‘Hong Kong and China Pass’, which includes six one way trips (or three round trips) to Hong Kong, Beijing and Shanghai, from all 67 destinations in Canada served by Air Canada or Jazz. This flight pass is available in two different pricing schemes for each geographic zone (Western Canada or Eastern Canada).

AIR CANADA COMMENDS GTAA FOR FEE REDUCTION Air Canada commended the Greater Toronto Airports Authority (GTAA) for reducing landing fees by 3.1% and terminal charges by 4.7% at the Toronto Pearson hub, effective 1 January 2008. The carrier also requested the Federal Government “follow the GTAA’s example by reducing the rents it charges to airports each year.” Page 7 October 2007

WESTJET EXPANDS WEB CHECK-IN WestJet is now offering Web check-in services for scheduled passengers on transborder and international flights, available from 24 hours to one hour prior to their flight. For guests flying to domestic destinations, Web check-in services have been available since April 2004. WestJet customers now have four options for check-in: traditional counter check-in, kiosk check-in, Mobile check-in, and now Web check-in.

WESTJET LAUNCHES EDMONTONCALGARY TRAVEL PASS WestJet launched a new WestJet Travel Pass on 19 September 2007, intended for frequent business travel between Calgary and Edmonton. Available for sale until 31 October 2007 at 7p.m. MT, the Edmonton-Calgary Travel Pass is priced at $999 before taxes and fees, and includes 10 transferable, one-way trips between Edmonton and Calgary until 30 April 2008.

NEWS ARTICLES WESTJET UPDATE – CON’T WESTJET COMPLETES FAA AIRWORTHINESS DIRECTIVE WestJet announced its completion of the Airworthiness Directive issued by the Federal Aviation Authority. This directive requires all Boeing 737 operators to undertake a visual inspection within 10 days from 28 August and conduct a torque test for the main slat track downstop assemblies within 24 days from 25 August. WestJet completed both directives by 4 September for its entire fleet of 67 B737 aircraft.

OTHER CANADIAN AIRLINES NEWS CANJET AIRLINES EXPANDS FLEET WITH NEXT GENERATION 737S CanJet Airlines announced that it will be expanding its current fleet of five 737-500 and one 737-300 aircraft with the addition of two next-generation Boeing 737 aircraft for the upcoming winter charter season. The 737-800 series aircraft will have the capacity to seat 189 passengers and is equipped with Blended Winglet technology that improves fuel efficiency and aircraft range.

PORTER AIRLINES INCREASES TORONTO-OTTAWA-HALIFAX FREQUENCY Porter Airlines announced plans to increase flight frequency for the Toronto-Ottawa-Halifax route, from 17 December 2007 through 6 January 2008. During this peak holiday season, the carrier will be operating three daily round-trip TorontoOttawa-Halifax flights, seven weekday round-trip Toronto-Halifax flights, and six weekday roundtrip Toronto-Montréal flights (with reduced frequency on weekends for the latter two routes). Page 8 October 2007

PORTER AIRLINES INTRODUCES DIRECT TORONTO-MONT TREMBLANT FLIGHTS THIS WINTER

Porter Airlines announced that it will be offering direct service from Toronto City Centre Airport (TCCA) to Mont Tremblant International Airport for this winter season from 22 December 2007 to 31 March 2008. This allows passengers to fly from downtown Toronto to the ski hills of Mont Tremblant in roughly 70 minutes.

U.S. AIRLINES NEWS US AIRWAYS PURCHASES 92 AIRBUS AIRCRAFT US Airways Group Inc. recently announced its purchase of 92 Airbus aircraft, consisting of 18 A350-800s, four A350-300s, 10 A330-200s, and 60 A320 family aircraft.

COMAIR RECEIVES ITS FIRST TWO BOMBARDIER CRJ-900 AIRCRAFT Comair announced that it has received the first two Bombardier CRJ-900s, out of their total order of 14 aircraft of this type. The outstanding aircraft are scheduled for delivery by April 2008. Comair expects these 76-seat planes to generate more revenue and to be more economical than the 50-seat CRJ-900s that are currently part of their fleet; thus the carrier plans to sell the 50-seaters back to Bombardier.

HORIZON AIR INCREASES CAPACITY FOR THE WINTER SEASON

Horizon Air announced plans to continue winter seasonal service to three ski resorts in British Columbia. This includes daily Q400 service between Seattle and Kamloops for travel to Sun Peaks ski hills and four per day Q400 service between Seattle and Kelowna for travel to Big White and Silver Star ski hills.

NEWS ARTICLES CARGO NEWS

PEOPLE IN THE NEWS

TNT EXPRESS EXPANDS TO CANADA

KRAKOWSKI TO SERVE AS FAA CHIEF OPERATING OFFICER

TNT Express recently launched a Toronto-based customs brokerage division to handle all incoming freight into Canada. This brings the total number of TNT customs brokerage units in North America to three, with others located in New York and Los Angeles.

CATHAY PACIFIC INCREASES FREIGHTER SERVICE TO TORONTO

Cathay Pacific increased the frequency of its Hong Kong-Toronto freighter service from three per week to four per week, effective 22 August 2007. The additional flight will be operated using B747-400 freighter.

CARGOJET SIGNS CONTRACT TO INCREASE CAPACITY

Cargojet announced that it has signed agreements with existing clients to expand route capacities. Additional routes operated between Canadian cities and major U.S. cities, using B727-200F Advanced Freighter aircraft, is estimated to increase revenues by $20 million annually.

WESTCAN OFFERS CARGO CHARTER SERVICES FROM EDMONTON

WestCan International Airlines announced that it will be offering air cargo charter services from an Edmonton base, using B737 freighters. WestCan is a Canadian carrier that offers non-scheduled, all-cargo air services within Canada and to/from the U.S.

WORLD’S LARGEST CONTAINER SHIP On 16 October, Samsung Heavy Industries announced that it had developed a 16,000 TEU ship - the world’s largest container vessel. To put this in context, the vessel will be able to carry 180,000 tons of cargo, which is about 1,450 fully loaded 747-400Fs. Page 9 October 2007

U.S. Secretary of Transportation, Mary E. Peters, announced the appointment of Captain Henry P. (Hank) Krakowski as Chief Operating Officer of the Federal Aviation Administration’s (FAA) Air Traffic Organization. Effective 1 October 2007, Krakowski will manage the operational and financial performance of the air traffic control system, as well as the FAA’s research and acquisition programs.

LAING, LEE, VAUGHAN APPOINTED TO THE TRANSPORTATION APPEAL TRIBUNAL OF CANADA The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, announced three appointments to the Transportation Appeal Tribunal of Canada (TATC). Mr. Alan Laing, currently an Air Canada captain, has been appointed for a four year term. Mr. Herbert Lee, the managing director of a Vancouver-based travel agency, LTA Holidays (Canada) Ltd, is serving a three year appointment. Mr. Arnold Price Vaughan, currently an Air Canada captain, has been appointed to the TATC for three years. TATC is a quasi-judicial body that “provides an independent review process for anyone who has been given notice of an administrative or enforcement action taken by the Minister of Transport, railway safety inspectors or the Canadian Transportation Agency under various federal transportation Acts.”

NEWS ARTICLES PEOPLE IN THE NEWS – CON’T CTA APPOINTS SCOTT AS VICE-CHAIR

The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, announced that Mr. John Scott has been appointed as ViceChair of the Canadian Transportation Agency (CTA) for five years, beginning January 2008. Mr. Scott was formerly Vice President and General Counsel of a national corporation for ten years. CTA is “an independent, quasi-judicial tribunal that makes decisions on a wide range of economic matters involving federally-regulated modes of transportation (air, rail and marine).”

CATSA APPOINTS MCLEAN TO THE BOARD OF DIRECTORS

The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, announced that Mr. Gene McLean has been appointed to the board of directors of the Canadian Air Transport Security Authority (CATSA) for a three year term. Previously, Mr. McLean served as Vice President and Chief Security Officer at TELUS Communications, as well as Director of Security for the Canadian Bankers Association. CATSA is a not-for-profit federal Crown corporation providing air security services to Canadian airports.

AIR CANADA APPOINTS ROUSSEAU AS EXECUTIVE V.P. AND CFO

Air Canada announced the appointment of Michael Rousseau as Executive Vice President and Chief Financial Officer of Air Canada. Formerly the President of Hudson’s Bay Company, Rousseau will be responsible for the overall financial performance of the airline, including all financial reporting and planning, investor relations, treasury and controller’s operations, taxation, pension administration and internal audit, and procurement and corporate real estate, beginning 22 October 2007. Page 10 October 2007

UPS NAMES SUCCESSOR TO RETIRED CHAIRMAN AND CEO United Parcel Service (UPS) announced the retirement of Mr. Mike Estew, Chairman and Chief Executive Officer (CEO) of UPS, effective at the end of the year. Mr. Scott Davis, who is currently the Vice Chairman and Chief Financial Officer (CFO) of UPS, has been named his successor.

OTHER EMIRATES LAUNCHES NEW TORONTO SERVICE Dubai-based Emirates Airlines announced that it will be offering non-stop TorontoDubai service with three per week frequency at the end of October 2007. This new service will utilize Boeing 777-300ER aircraft, which has the ability to seat 354 passengers and carry six tonnes of cargo from Dubai to Toronto and 12 tonnes of cargo on the return trip.

WINNIPEG AIRPORT TO INCREASE AIRPORT IMPROVEMENT FEE

Effective 1 January 2008, the Winnipeg Airports Authority has announced that airport improvement fees will increase by $5 to $20 for commercial passengers departing from Winnipeg International Airport. Revenues from the fee increase will be used to fund ongoing construction at the airport, including a new air terminal building that is scheduled to be completed in 2009.

PASSENGER FEES TO INCREASE AT MONTRÉAL-TRUDEAU Aéroports de Montréal (ADM) has announced that airport improvement fees will increase by $5 to $20 per departing passenger, beginning 4 January 2008. ADM intends to complete $190 million worth of airport infrastructure development in 2007, with an additional $600 million to be completed by 2012.

TRUSTED TRAVELLER PROGRAM: FACILITATING INTERNATIONAL INBOUND AIR TRAVEL October 2007

With air traffic reaching unprecedented levels in 2007, airports are increasingly under pressure to ease congestion and reduce wait times. Typical solutions involve investments in new or reconfigured facilities to increase capacity. However, more efficient passenger processes such as those deriving from Trusted Traveler initiatives will also provide significant incremental capacity gains without the capital investments involved with facility expansion.

What is Trusted Traveler? Marcel Champagne Manager, Operations Planning

International Trusted Traveler programs provide a means of expediting Primary Inspection of low-risk, pre-approved international travelers through the use of biometrics and automated technologies. Trusted Traveler operations fit in with the trend for self-service automation through the airport environment. Upon arrival for Primary Inspection at participating ports-of-entry, program members undergo Primary Inspection through automated self-serve kiosks. These verify identification through biometrics (e.g. iris scan, fingerprint) and enable customs processing through self-declaration. As most program members are frequent travelers, the time involved with kiosk utilization and resulting wait times are short in comparison to traditional Primary Inspection processes. Short wait times in particular are possible due to the ability for program members to bypass primary queues to access the dedicated kiosks.

Trusted Traveler in the U.S. In the United States, programs such as INSPASS, SENTRI and PACE were introduced in the 1990’s but were limited in application to only a limited number of Ports-of-Entry and segregated by mode or bordering country. However, the deployment of the joint U.S.-Canada NEXUS program represents a significant advancement of Trusted Traveler programs in North America, given its bi-national scale and multimodal application. NEXUS remains at present the only Trusted Traveler program available for use by air travelers to the U.S., but is only currently available or being deployed at Preclearance operations in Canadian airports. With approximately 136,000 members by mid-2007, NEXUS membership is still weak. The recognition of the NEXUS card as an alternative to the passport for travel into the United States for U.S. and Canadian citizens under the Western Hemisphere Travel Initiative (WHTI) increases the attractiveness of program membership.

What Next? With an estimated 20% of air travelers currently generating about 65% of traffic, extending Trusted Traveler program operations to a broader spectrum of airports and applications will be crucial towards improving the international arrivals process. As a first step, Customs and Border Protection (CBP) has indicated its intention to increase resources and improve vetting engines for all Trusted Traveler membership processing for 2008.

Page 11 October 2007

TRUSTED TRAVELLER PROGRAM – CON’T Concurrently, the model port-of-entry program enabled through the Improving America’s Security Act of 2007 (Public Law 110-53) encourages the use of best technologies and most efficient processes for improved border security and to facilitate visitor arrivals to the United States. Currently piloted at Houston (IAH) and Dulles (IAD) international airports, other model ports-of-entry will be deployed to the 20 U.S. international airports having the highest number of foreign visitors. This objective provides opportunities for broader deployment of Trusted Traveler program operations in U.S. airport ports-of-entry. While not explicitly including Trusted Traveler programs as part of this initiative, CBP has expressed intent for deploying Trusted Traveler programs to model ports. Figure 1: Targeted Model Ports Top 20 US Airports Port-of-Entries by foreign visitors for 2006

(Not shown: Honolulu, SanJuan and Guam)

Factors for Success While large-scale Trusted Traveler program deployment will likely still be a few years away, expanding the membership base early on will be a key factor of initial program operational success. Given the comprehensive vetting process involved with Trusted Traveler program memberships, the potential development of multi-application cards through linkages to the Transportation Security Administration’s Registered Traveler program could contribute to significantly increasing early membership levels and generating higher traffic at initial Trusted Traveler program sites. The success of these programs will over time provide multiple benefits to the aviation industry. For CBP, successful deployment of Trusted Traveler program operations to the nation’s top 20 airport ports-of-entry will contribute to staffing efficiencies through increased focus on ‘unknown’ higher risk travelers and more efficient use of floor space in Primary Inspection areas. For airport operators, the improved throughput enabled by these operations provides incremental increases in capacity for components of the international arrivals process, reduces capital requirements associated with facility expansion projects, and increases airport service levels. For travelers, Trusted Traveler program availability will provide opportunities for more rapid processing to program members, shorter overall wait times and, more importantly, a better and safer traveling experience for the public.

Page 12 October 2007

THE ENVIRONMENTAL REPORT October 2007

InterVISTAS Announces Environmental Practice InterVISTAS Consulting Inc. is pleased to announce the launch of a new environmental practice. The practice provides services including carbon calculators and inventories, strategies to reduce greenhouse gas emissions, and options for carbon offsets. The company also provides research into consumer attitudes to carbon reduction strategies. InterVISTAS also assists in a broad range of environmental services to airports, including noise monitoring, mitigation and forecasts, ground water, glycol and wildlife management, and regulatory compliance.

InterVISTAS Announces Agreement with Offsetters Carbon Neutral Society Joe Kelly Director, Environmental Services

InterVISTAS Consulting Inc. announced it will provide marketing services to the Offsetters Carbon Neutral Society effective 1 October 2007. Through this partnership, InterVISTAS will promote the sale of carbon offsets to the tourism and transportation industries and provide website maintenance and other support. Offsetters Carbon Neutral Society is Canada’s pre-eminent provider of high quality carbon offsets for individuals and companies seeking to reduce or eliminate their climate impact. It is a not-for-profit society that invests funds from its clients into renewable energy and energy efficiency projects that would not have taken place without its involvement. For more information, see www.offsetters.ca.

Harbour Air Seaplanes to become North America’s first Carbon Neutral Airline Harbour Air Ltd, the world’s largest all-seaplane airline, announced that it has pledged to become completely carbon neutral by the end of 2007. Effective 1 October 2007, Harbour Air will purchase high quality carbon offsets to mitigate the climate impact of all scheduled service, charter and tour operations. This will make Harbour Air the first air carrier of any variety in North America and the only seaplane airline in the world to make all of its flight services 100% carbon neutral. Harbour Air is further pledging to offset its corporate emissions to become the first carrier in the world to achieve complete carbon neutrality in all aspects of its business. This venture was created in partnership with Offsetters Climate Neutral Society. Funds generated from this partnership will be used to initiate offset projects within Harbour Air’s operating area.

UK Wants to Replace Passenger Duty with Tax Based on Flights Starting in 2009, the British government intends to replace the controversial air passenger duty with a new “per flight” tax based on carbon emissions. The proposed tax is designed to more accurately reflect the environmental costs of air travel and to encourage higher load factors and the use of more efficient aircraft.

Page 13 October 2007

THE ASIA REPORT October 2007

Update on India-EU Open Skies Negotiations India and the European Union (EU) are negotiating for a “horizontal” civil aviation agreement that would replace existing individual bilaterals and treat EU member states as a single entity. Currently, India has an agreement with the UK which permits airline designations from other EU members. After three meetings, both sides are keen on reaching such an agreement.

New Routes from U.S. to China Awarded and Proposed

Doris Mak Manager, Special Projects

The Department of Transportation has awarded Delta Airlines and United Airlines new direct routes to fly from the U.S to China. Delta has been awarded a new route from Atlanta to Shanghai, while United was awarded a direct route from San Francisco to Guangzhou. Proposed awards have also been made for American to operate Chicago-Beijing, Continental to operate Newark-Shanghai, Northwest to operate Detroit-Shanghai, and US Airways to operate Philadelphia-Beijing. Final decisions will be made after public comment is considered.

Australia Boosts Arrivals Duty Free The Australian Ministry for Small Business and Tourism recently confirmed an amendment to Australia’s Customs Act to allow inbound travellers a duty free allowance of AUD$900, equivalent to approximately CAD$775. This amendment applies to duty free purchases of gifts, electronics and fashion merchandise at Australian Airports, but does not affect duty free allowances on liquor and tobacco. According to Fran Bailey, the Australian Government’s Minister for Small Business and Tourism, increasing the arrivals duty free allowance will “help boost the tourism retail sector by keeping more tourist spending in Australia.”

China May Open Joint Civil-Military Airports for Low Cost Carriers The Chinese Civil Aviation Regulator has requested the Chinese military to allow low-cost carriers to use secondary airports in China, in order to speed up the development of low-cost carriers in China’s aviation industry. Yang Yuanyuan, top regulator in China, expressed his interest in opening joint civilmilitary airports in Beijing and Guangzhou. The Chinese Government has already spent billions of dollars refurbishing old airports and constructing new airports. In an effort to resolve this issue, the Chinese Government has invested nearly 1 billion yuan (approx. CAD$130 million) in the form of subsidies, of which 600 million yuan (approx. CAD$78 million) went to regional airports and 300 million yuan (approx. CAD$39 million) went to the airlines serving these airports.

Finnair Plans to Expand Asian Coverage Finnair, a Helsinki-based airline, announced plans to fly to more Asian destinations. The carrier claims that it has a geographic advantage to serve North America-Asia routes, with the shortest routes typically passing through Finland’s airspace. Furthermore, Finnair insists that passengers would find it more manageable and environmentally friendly to split long haul flights into two legs. Since 2001, Finnair has increased its service to Asia from nine weekly flights to 59, due to increased travel demand to Asia. Finnair currently serves the following ten destinations in Asia: Hong Kong, Shanghai, Beijing, Guangzhou, Tokyo, Osaka, Nagoya, Delhi, Mumbai, and Bangkok.

Page 14 October 2007

THE CARIBBEAN REPORT October 2007

Canada Attracts Caribbean Attention The strengthening Canadian dollar and the decline in U.S. arrivals has several Caribbean destinations increasing their presence in the Canadian market in an effort to grow what is currently a relatively small source market. Aruba has launched a marketing campaign aimed at the Ontario market to increase the island’s market share from last year’s 22,500 Canadian arrivals. The first Caribbean Week, recently held in Toronto and hosted by the Caribbean Tourism Organisation, was a regional effort to increase awareness of, and visitation to, the Caribbean.

Low Cost Carrier Capacity to the Caribbean Continues to Expand

Jacqueline Clarke Senior Project Manager, Strategic Planning

Significant capacity will be added to Caribbean routes this winter as four North American low cost carriers add new destinations and expand their existing services to the region. Between November 2007 and February 2008, JetBlue will add 28 flights per week from the U.S., with new services to St. Maarten, Ponce in Puerto Rico, and Puerto Plata in the Dominican Republic and an increase in service to Santiago, Dominican Republic. Frontier will offer a new service between Milwaukee and Cancun three times per week while Spirit Airlines will begin service to Aruba, Grand Bahama Island and Ponce, offering a total of 15 additional frequencies per week. From Canada, WestJet will increase its service to the Caribbean with a total of nine new services per week from Toronto to Montego Bay, St. Lucia, and Puerto Plata and Punta Cana in the Dominican Republic. It also offers direct service between Hamilton, Ontario and Nassau, Bahamas.

Diversifying the Hotel Investment Base Caribbean islands have traditionally attracted North American and British hotel chains. More recently, the region has begun to attract the attention of other European and Asian investors. In an effort to further encourage this interest, Caribbean officials recently participated in two high-powered “tourism trade missions”. A summit meeting between a Caribbean tourism delegation, including the Chairman of the Caribbean Hotel Association, the Chairman of the Caribbean Tourism Organisation, and senior executives of the main Spanish hotel chains operating in the Caribbean, was held at Palma de Mallorca, in Spain's Balearic Islands. The Spanish hotel presence is growing throughout the region, expanding from Mexico and the Dominican Republic to Bahamas in the north and to Aruba in the south. More than 20 of Spain's most powerful hotel investors attended the meeting to discuss a range of issues including global competitiveness, Spanish investment, the U.S. passport requirement, and global warming. Similarly, delegates from 13 Caribbean countries attended the 2nd ChinaCaribbean Economic and Trade Cooperation Forum in China last month, returning home with pledges of about $530 million in favourable loans over three years to Chinese companies investing in the Caribbean and the Chinese government’s promise to actively encourage its citizens to choose the Caribbean as their travel destination, taking advantage of the region’s Approved Destination Status.

Last Minute Review of Air Jamaica/Virgin Atlantic Code-share Agreement Jamaica’s newly appointed Transport and Works Minister has called for a review of the code-share agreement signed by Virgin Atlantic under the previous administration whereby Air Jamaica-operated flights to London Gatwick would be replaced by code-share, Virgin-operated services. Air Jamaica also sold its landing and gate slots at Heathrow to Virgin Atlantic. The Minister is questioning whether the GBP5.1 million paid by Virgin for the slot is fair market value and whether the loss-making route (projected at US$30 million in 2007) could be turned around in the longer term.

Caribbean Airlines First to Offer Emission Offsetting In partnership with the CarbonNeutral Company, Caribbean Airlines joins other international carriers in offering customers the option to offset their airline carbon emissions by investing in eco-friendly projects. The airline is the first in the region to offer sustainable air travel, providing customers with an “offset calculator” on its website and the opportunity to neutralise their carbon emissions. Page 15 October 2007

THE EUROPE REPORT October 2007

EU Calls for end to Canada Visa Requirements The European Commission has asked Canada to scrap the requirements for citizens of any EU member state to hold an entry Visa. Currently Canadians do not require an entry visa for any EU member state, but Canada still imposes a requirement on some of the newly admitted states.

New Model for Open Skies Agreements

John Weatherill Regional Vice President, InterVISTAS-E.U. UK Office

The UK and Singapore have raised the bar for aviation liberalization with the new air services agreement they announced earlier this month. As is the case in “standard” open skies agreements, it provides for unlimited 3rd, 4th, and 5th freedom rights. Unlike the standard agreement, however, it also allows for unlimited 7th freedom rights for both passenger and cargo. (The majority of U.S. Open Skies agreements allow 7th freedoms for all-cargo services only; the rest do not allow it at all.) In a major departure from virtually all other agreements, this one also allows cabotage. Singapore Airlines is now authorized to carry passengers and cargo between points in the UK. Of course, the reciprocal right in this case is meaningless, so it is rather remarkable that the UK and Singapore reached this new peak in liberalization. The agreement will be put into effect on 30 March 2008, which is also the date the Stage 1 U.S.-EU agreement opens up the transatlantic market to U.S. and EU carriers.

UK Passenger Duty to be Replaced In a pre-budget report to Parliament, UK Chancellor Alistair Darling announced that the government is planning to abolish the hated air passenger duty (APD), which is paid by departing passengers, and replace it with a tax based on flights instead. It is not immediately clear how the new tax would be calculated; however it is likely that the overall revenue collected by the government will increase, as Darling stated, “I propose that aviation makes a greater contribution in respect of its environmental impact…” The change is scheduled to occur in 2009. Until that time, the APD will be frozen at its existing levels: £10/£20 for short/long haul coach passengers, and £40/£80 for short/long haul business/first class passengers. The APD was last increased in February 2007, ostensibly for environmental reasons, when it was doubled by then-Chancellor Gordon Brown. UK airlines complain that the APD is excessive and destimulating, with EasyJet and British Airways each claiming that their current APD payments offset their carbon costs more than four times over.

Air Transat Designated to Serve Switzerland Air Transat has been designated to operate scheduled air services between Canada and Switzerland, as announced by the Honourable Lawrence Cannon, Canada’s Minister of Transport, Infrastructure and Communities, on 27 September 2007.

Wizz Air Expansion Hungarian LCC Wizz Air, which has been in operation since 2004, is embarking on a large scale expansion after announcing a firm order of 50 Airbus A320s, and options for an additional 25. The airline will accept deliveries of the 50 planes between 2011 and 2014. Wizz Air currently operates on 70 routes within Europe.

EC Won’t Force Ryanair to Sell Down Aer Lingus Stake The European Commission will formally advise Aer Lingus this week that it does not have the authority to force Ryanair to sell down it’s stake in the airline, since Ryanair’s 29.4% shareholding does not give it effective control of its Irish rival. Aer Lingus will appeal to the European Court of First Instance in the coming weeks. Page 16 October 2007

THE OTTAWA REPORT October 2007

Canada-EU Open Skies Talks Receive EU Mandate The European Commission has been given the official mandate to begin talks between the EU and Canada to discuss the possibility of an EU-wide Open Skies regime with Canada. In response to the announcement, Jim Facette, President and CEO of the Canadian Airports Council, expressed that he is looking forward to an “Open Skies regime between Canada and the EU similar to the one negotiated already between the EU and the U.S.”, in order to promote tourism growth with Europe. The negotiations between Canada and the EU will likely begin in the coming months, according to a European Commission spokesman.

Martin Copeland Senior Vice President, Aviation

A successfully established Open Skies regime between Canada and the EU would liberalize Canada’s air regime with all 27 EU member states. This would replace Canada’s bilateral agreements with 17 out of the 27 EU member states, including the Blue Sky agreements with Britain and Ireland, and provide traffic rights to those states without agreements. As a result, Canadian and European airlines would be allowed to fly between any Canadian city and any EU city. According to a study recently completed by the European Commission, the successful establishment of a CanadaEU Open Skies regime is expected to stimulate passenger traffic from the current eight million annual passengers to 14 million by 2011. It is also anticipated that the agreement would generate 3,700 jobs in the initial year and more than $110 million in consumer benefits as a result of lowered airfares.

Westjet Designated to Fly to St. Lucia WestJet has been designated by the federal government to provide scheduled services from Toronto to St. Lucia (Southern Caribbean), effective 24 September 2007. As a result, WestJet announced that it will be offering seasonal non-stop service between Toronto and St. Lucia using Boeing NextGeneration 737 aircraft, beginning 16 December 2007.

Government of Canada Signs MOU with Atlantic Provinces The Government of Canada and the Atlantic provinces have signed a Memorandum of Understanding (MOU) on the establishment of an Atlantic Gateway in Canada. The goal of the Atlantic provinces is to develop the Atlantic Gateway as a strategic, integrated and globally competitive transportation system to handle international goods and passengers movement on North America’s east coast. The MOU summarises the objectives of developing an Atlantic Gateway strategy over the next two years.

Government of Canada to Inject $690 Million into VIA Rail On 11 October, the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and the Honourable Jim Flaherty, Minister of Finance, announced a five-year funding package valued at $692 million for VIA Rail. Included in the package is $516 million to be allocated towards infrastructure improvement and equipment refurbishments including fleet renewal measures, station refurbishment, and efforts to reduce bottlenecks in the Quebec City-Windsor corridor. The remainder of the funding will be directed towards offsetting VIA Rail’s operating costs until the upgrades are completed.

2007 Canadian Transportation Awards The 2007 Canadian Transportation Awards were announced on 19 October 2007, with the following results: Ms. Geni Brafman Bahar, Vice President of iTRANS Consulting Inc. of Richmond Hill, Ontario, was awarded Transportation Person of the Year; Mr. Roger Roy, formerly Director General, Economic Analysis at Transport Canada, received the Award of Excellence; Mr. John Lisman, a consulting engineer in Victoria, B.C., specializing in the areas of highway safety engineering and litigation support, was granted the Award of Achievement; and Dr. Ralph Haas, Distinguished Professor Emeritus and the Norman W. McLeod Engineering Professor at the University of Waterloo, Ontario, was honoured with the Award of Academic Merit. Page 17 October 2007

WASHINGTON REPORT October 2007

United States and Australia Intend Aviation Open Skies The Honourable Mary Peters, U.S. Secretary of Transportation, and the Honourable Mark Vaile, Australia’s Deputy Prime Minister, announced their intention to reach a comprehensive open-skies aviation agreement between the United States and Australia. Both countries strongly believe in air service liberalisation and have commited to initiating bilateral discussions before the end of this year. It is expected that the United States and Australia will reach an agreement on the terms of their aviation open-skies arrangement by early 2008. Currently, an open-skies agreement between the United States and Australia exists only for cargo services.

DOT to Address Congestion at New York Airports Jon Ash President InterVISTAS-ga2 Consulting Inc. Washington, D.C.

On 27 September, the Honourable Mary Peters, U.S. Secretary of Transportation, announced that a group of airline, airport, and travel officials have been tasked to develop a set of measures to curb congestion at New York’s three primary airports. The group, entitled the Aviation Rulemaking Committee, is expected to propose measures to reduce congestion by December 2007. An additional scheduling committee that consists of airlines operating at JFK has been formed by Secretary Peters. The group is to provide recommendations as to how to reduce the number of flights departing and arriving at the airport.

FAA Proposes All Aircraft be Satellite Ready by 2020 The Federal Aviation Administration (FAA) proposed on 2 October 2007 that all aircraft flying in the nation’s busiest airspace be equipped with satellite-based avionics by 2020. The move is part of a transition to the Next Generation satellite-based air transportation system, which enables air traffic controllers to follow aircraft movement by satellites instead of less accurate radar technology. The increased precision with satellite technology may allow controllers to reduce separation standards between aircraft, thereby allowing more aircraft to operate in high traffic airspace.

Record Airline Traffic Reported in July U.S. airlines set a single-month traffic record in July 2007, carrying 72.2 million scheduled domestic and international passengers during the month. The previous record of 70.6 million was set in July 2005.

Airline On-time Performance Improves in August Over July In August 2007, the largest airlines in the U.S. reported an overall on-time arrival rate of 71.7%. This figure is an improvement over July 2007 (69.8%), but down from August 2006 (75.8%). The carriers reported that 8.1% of August flights were not on-time due to aviation system delays, 9.3% were due to late-arriving aircraft, 7.7% were due to ‘factors within the airline’s control,” and 0.1% were for security reasons. Additionally, the Bureau of Transportation Statistics reported that 38.4% of late flights were delayed by weather.

Page 18 October 2007

INTERVISTAS NEWS Solomon Wong Appointed as Senior Vice President, Security, Borders and Planning InterVISTAS is pleased to announce that Solomon Wong has been appointed as Senior Vice President, Security, Borders and Planning, effective 1 October 2007. In addition to managing and expanding InterVISTAS’ facilitation services for the major international airports in Canada, Mr. Wong developed InterVISTAS’ security aviation practice. Most recently, he has succeeded in diversifying the security practice into the ports and transit sectors. Mr. Wong holds a Masters of Science in Planning.

Dr. Joe Kelly Appointed to Lead New Environment Practice Group InterVISTAS is pleased to announce that Dr. Joe Kelly has been appointed to lead InterVISTAS’ newly formed environment practice. With over ten years of senior-level consulting experience to both public and private sector clients in tourism/hospitality, transportation, land-use/housing, utilities and health care, Dr. Kelly has expertise in market and consumer research, forecasting and scenario analysis. He formerly served InterVISTAS as Director, Strategic Services, and has been repositioned in response to growing opportunities in the environmental sector. Dr. Kelly holds a Doctorate in Resource and Environmental Management and a Masters degree in Statistics.

InterVISTAS Upcoming Speaking Engagements Paul Ouimet, Executive Vice President, Business and Strategic Planning • Caribbean Tourism Organization 30th Annual Caribbean Tourism Conference: San Juan, Mexico – 23 October 2007 Mr. Ouimet will be delivering a presentation titled, “Caribbean Air Service – Building for the Future.” Dr. Joe Kelly, Director, Environmental Services • Travel and Tourism Research Association Canada Conference 2007: Charlottetown, PEI – 18-20 October 2007 Mr. Kelly will be delivering a presentation titled, “Consumer Attitudes Toward Carbon Offsetting in Tourism.” • German Aviation Research Society Conference 2007 – Workshop on Aviation and the Environment: Cologne, Germany – 28-29 November 2007 Mr. Kelly will be delivering a presentation titled, “Consumer Attitudes Toward Carbon Offsetting in Tourism.” Mark Haneke, Vice President, Network and Strategic Planning • Altitudes East Conference: Halifax, Nova Scotia – 18 October 2007 Mr. Haneke will be delivering a presentation titled “LCCs vs. Legacies: Converging Business Models.”

Page 19 October 2007

INTERVISTAS NEWS – CON’T John Weatherill, Regional Vice-President, InterVISTAS-E.U. • Airport Marketing & Business Development Conference: Copenhagen, Denmark – 18 October 2007 Mr. Weatherill will be delivering a presentation titled “Airline Strategy and Airport Route Development Implications.” • Low Cost Carriers Evolving Business Models Conference: Cologne, Germany – 6/7 November 2007 Mr. Weatherill will be delivering a presentation titled “Adapting Airport Route Development Strategies to Reflect Changing LCC Business Models.” Dr. Mike Tretheway, Executive Vice President and Chief Economist • University of South Australia 2007 Trade Practices Workshop: Adelaide, South Australia – 19/20 October 2007 Dr. Tretheway will be delivering a presentation titled, “What’s Next in Airline Competition Assessment?” • Air Transport Association of Canada Annual Meeting: Halifax-sur-mer – 5 November 2007 Dr. Tretheway will be delivering a panel titled, “Aviation and the Environment – Clearing the Air.” • Tourism Industry Association of Canada Annual Conference: Victoria, BC – 6 November 2007 Dr. Tretheway will be delivering a presentation titled, “Air Access Issues and their Importance for Tourism.” • Westac Conference: Maximizing Value in Supply Chains: Vancouver, BC – 14 November 2007 Dr. Tretheway will be delivering a presentation titled, “The Intermodal Terminal Opportunity at Prince George.” • German Aviation Research Society Conference on Assessing competition in the Airline Industry: Manheim, Germany – 26 & 27 November 2007 Dr. Tretheway will be speaking on the role of price discrimination in assessments of airline mergers and trade priorities. Solomon Wong, Senior Vice President, Security and Planning, Stanley Tse, Senior Project Manager, Security and Planning • 9th Annual Border Regions in Transition: Victoria, BC / Bellingham, WA – 12-15 January 2008 Mr. Wong and Mr. Tse will be delivering a presentation titled, “Security Gateways and Corridors: Policy Implications for Emerging Gateways.”

Solomon Wong

Stanley Tse

InterVISTAS’ Canadian Aviation Intelligence Report is a collection of information gathered from public sources, such as press releases, media articles, etc., information from confidential sources, and items heard on the street. Thus, some of the information is speculative and may not materialise. To inquire about advertising opportunities or to provide comments/feedback on the InterVISTAS’ Canadian Aviation Intelligence Report, please contact Rob Beynon at rob_beynon@InterVISTAS.com or 1-604-717-1864. To subscribe, please send an email to subscribe@InterVISTAS.com To unsubscribe, please send an email to unsubscribe@InterVISTAS.com Page 20 October 2007