Transport 2000 Canada Hotline

12 January 2001

Summary

Details

This is the Transport 2000 Canada Hotline for 12 January 2001, Mike Murphy reporting.

1 - Energy

Oil prices for the rest of the calendar year are expected to be average less than last year, even with the expected production cut from OPEC next week. Analysts see New York crude oil selling at US$27.20 barrel for the first half of the year and then US$26.41 a barrel in the second half. This compares to the current price of US$29.41 a barrel.

2 - Rail

Unable to find any rail news in this week's paper and on the VIA website, except for two minor accidents: a derailment and a level crossing accident.

3 - Road

3.1 - SUVs knocked for roll-over performance; cars fare better

Due to high centre-of gravities, nearly all Sport Utility Vehicles were rated as being more likely to be in a roll-over accidents. Cars, with a lower centre of gravity do much better, according to a recent study.

3.2 - Distinctive License Plates for Drunk Drivers?

The BC Association of Chiefs of Police are being asked to support the concept that convicted drunk drivers should be forced to have licence plates with a special 'D' in them. The concept met quick opposition from some politicians and liberty groups.

4 - Air

4.1 - CanJet and Royal Expand

On 1 March, Halifax-based CanJet will add another 737 to its current fleet of 6 and expand service in the Toronto-Halifax run and the Montreal-Toronto run. Royal Airlines also expanded its Montreal-Halifax-Ottawa service. The one way Ottawa-Montreal ticket is $67; to Halifax it is $87.

4.2 - Government Loan to Bombardier

The federal government's below market rate loan of up to $1.7B to Bombardier hit the news this week. The loan, made through the Federal Export Development Corporation, will allow Bombardier, the world's leading supplier of turbo-prop commuters and regional jets, to sell 150 Regional Jets to Air Wisconsin. Bombardier's main rival, Embraer of Brazil, denounced the move and is seeking review by the World Trade Organization. Industry Minister Brian Tobin defended his government's deal by saying Canada is doing nothing differently than Brazil. Academics say Canada is within its legal right to do so, but may lose its status as a squeaky-clean player in the world market. The company also took to task two academics who wrote articles about the deal, calling their articles "specious" and "gratuitously rancorous."

4.3 - Air Canada Fleet Rationalization

Air Canada will be eliminating from its fleet all of the B737s, F28s and BAE-146s that it inherited from the take-over of Canadian Airlines. Air Canada is standardizing around the Airbus A319/320/321 for its medium haul transcontinental aircraft and the Canadair Regional Jet for its shorter routes. This should result in major economies. Most airlines have no more that 3-5 types in their inventory to minimize problems with spares, training and crew scheduling. The most consistently profitable airline, Southwest, and its knock-offs have only one type of aircraft. Air Canada's partner airlines will use the Dash 8; junior partners will use aircraft of their own choice, such as the Beech 1900.

4.4 - Air Canada Introduces New Fare Class

Air Canada introduced a new class of fare that will cut the price of a ticket by as much as 50% and removing traditional conditions of staying a Saturday. Critics say it is intended to keep Air Canada out of trouble with regulators as the company faces competition from upstart airlines such as Halifax-based CanJet and Terrace, BC based Hawkair.

4.5 - Air India trial

Two British Columbia men charged in the 1985 bombing of an Air India 747 in 1985, that killed all 329 people, have been denied bail. This means the two face a long jail stay, as the trial is not expected to be over until the spring of 2003. The aircraft had departed Toronto with a stop in Montreal when it blew up over the Irish Sea. A similar explosive device was placed aboard a CP 747, but it exploded in the baggage area of the airport in Tokyo, killing two baggage handlers.

4.6 - Deep Vein Thrombosis

Economy Class Syndrome, or the risk of suffering potentially fatal blood clots through deep vein thrombosis hit the news this week.

A class action lawsuit launched in Australia cites Air Canada along with five other long haul carriers. A young Australian woman died after a long haul flight.

A British report suggested that an average of up to 10 people a year die of deep vein thrombosis at London's Heathrow each year. Japanese experts say an average of 3-4 people a year may die of economy class syndrome at Narita Airport every year.

Some doctors recommend aspirin to thin the blood before long haul flights, along with elastic support socks and avoiding alcohol. Those most susceptible include the elderly, pregnant women, people who have had recent surgery and those with a family history of blood clots.

Some airlines are preparing information for passengers on how to minimize the threat. Techniques include stretching while seated and moving around in the aircraft.

APSG Vice Chairman James T. Lyon, Q.C. appeared on the lead story on CTV on this issue earlier in the week and several times on NewsNet, suggesting the exercise program being advanced by passengers is insufficient and that the airlines ought to ensure a requisite seat pitch to avoid the situation.

4.7 - Cell phone Cause of Swiss Crash

A Crossair Saab 340 crashed just after take off from Zurich on 10th Jan 2000, killing all 10 passengers and crew on board. Swiss aviation investigators report that a mobile phone may have caused the crash. If so, it would be the first time a mobile phone had caused a crash. Studies have proved that radio waves from mobile phones while switched on can interfere with aircraft electronic and navigation systems and that the use of mobile phones aboard aircraft presents even greater safety risks.

4.8 - Air Industry plans Round Table on Unruly Passengers

The Air Transport Association of Canada, the airline lobby organization based in Ottawa has announced it will hold a round table on unruly passengers in February. APSG lauds this initiative and has suggested the invitation of internationally noted expert Angela Dahlberg of Calgary, whose book "Air Rage" (ISBN 0 7546 1325 9) is expected to be published June 2001 by Ashgate.

Finally...

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