ALPA officials present testimonies on proposed Canadian aviation industry restructuring.

AIRLINE INDUSTRY INFORMATION-(C) 1997-9 M2 COMMUNICATIONS LTD

Several officials of the Air Line Pilots Association, International (ALPA) have presented testimonies before the Canadian House of Commons Standing Committee on Transportation regarding the proposed restructuring of the

Canadian airline industry. In particular, the president of ALPA's Canada Board has asked the Canadian government to revoke the 10% limit on ownership of Air Canada, has also asked the Committee to recommend that the foreign ownership limit for the airline industry be increased and has confirmed ALPA's stance that, in labour terms, an integrated carrier is the best solution for creating a stable industry. The chairman of Canadian Airlines pilots' unit of ALPA and the Chairman of the Air Ontario pilots' unit, also representing Air Canada Regional pilots at Air Alliance/Air Nova and Air BC, also gave testimonies and answered committee questions. In related news, the president of Canada 3000 Robert Deluce has used his testimony before the Standing Committee to put forward a plan to consolidate Air Canada's regional subsidiaries Air Ontario, Air Nova and Air BC, and Canadian Regional Airlines, a subsidiary of Canadian Airlines International, to create one dominant regional carrier. Deluce is urging the Canadian government to force Air Canada to sell its subsidiaries by making it a condition of its proposed acquisition of Canadian Airlines, so that the restructuring can take place. Air Canada has rejected the proposal outright, saying that the regional carriers are 'critical' to the airlines' operations as they account for about 12% of passenger revenues. Meanwhile, the Canadian Transport Minister, who said he had not received a copy of the idea, has welcomed the proposal saying that it indicated that the 'whole restructuring process (was) evolving' according to The Canadian Press. Other industry observers have criticised the consolidation proposal as representing the formation of a monopoly.