Updating TC ’ s Data Regulations: Better Information for Better Decisions

1. Updating TC’s Data Regulations: Better Information for Better Decisions Air Transport Association of Canada2010 Annual General MeetingVancouver, British Columbia November 9th, 2010

2. Table of Contents • Background • Why does TC need data and why must it update its regulations? • Proposed survey changes • Proposed new surveys • Dropped elements • Next steps and conclusion

3. Background • Amendments to the Canada Transportation Act in 2007 have provided an opportunity to review existing regulations governing the information (data) that transportation undertakers report to the Minister of Transport; • New authority to collect data for security purposes and the environment and authority to impose fines for non reporting; • Current Carriers and Transportation and Grain Handling Undertakings Information Regulations are in place since 1998. In the ensuing 12 years, new priorities have emerged at TC while others have moved away from the forefront. • The review of data regulations covers all four modes of transportation and 9 stakeholder classes, air carriers being one of them. 12-year old regulations needed to be updated

4. Importance of Data for Transport Canada • Transport Canada is a very intensive user of data across all modes of transportation and all departmental groups and strategic outcomes. • Transport Canada acquires data through several sources, including legislation, regulation, commercial purchases, in collaboration with other departments and through exchanges with provinces, territories and other countries. • Transportation data is used to address a variety of issues, including: • Assessing the safety of Canada’s air transportation system; • Assessing the impact of various air transportation crisis (volcanic ash plume, Dec. 25 2009 attempted bombing, SARS, Air Canada’s financial challenges, proposed labour action at Jazz, Air Transat, closure of regional carriers, etc….); • Forecasting passenger demand and movements at over 100 airports across Canada; • Assessing infrastructure investments and their impact; • Conducting threat and risk assessments of Canada’s air transportation system; • Evaluating Airport Capital Assistance Program requests; • Assessing the rate of the Air Traveller Security Charge and its impact on passenger demand; • Measuring the throughput and competitiveness of Canada’s Gateways and Corridors; • Negotiating with other countries on issues such as air traffic rights or carbon emission trading schemes;

5. Engaging Stakeholders • Regulation proposals cannot be developed in a vacuum; all stakeholders should be involved; • Jan-Feb 09 : Internal consultations to determine TC’s data gaps; • Apr 09 : Feasibility survey conducted with industry to gauge industry’s reaction and the potential impact on it. ATAC was part of the associations consulted; • Fall 09 – Winter 10 : Meetings with ATAC to discuss the particulars of the regulation amendment proposal; • Nov 10 : Presentation to ATAC Joint Flight Operations & Commuter Operations Committee at AGM

6. Proposed Amendments • Amendments make two types of changes: • Survey Changes • Creation of new surveys • There is a recognition that any reporting change will create costs for the air transport industry; • Great care will be taken to minimize the cost of these changes on industry; • TC intends to offer electronic reporting solutions, which permit users to choose between automated reporting or a simple, flexible interface.

7. Proposed Survey ChangesStatement 2 EnvironmentInfrastructureGateways & CargoSecurity • Statement 2 is an existing survey for charter flights. Data is reported for each flight

8. Proposed Survey ChangesStatement 4 • Statement 4 is an existing survey for regional flights.Data is reported for each city-pair on a monthly or quarterly aggregated basis

9. Proposed Survey ChangesStatement 6 • Statement 6 is an existing survey for scheduled flights by larger aircraft. Data is reported for each flight

10. New SurveyFleet & Fuel Consumption • This is a new survey to gather information on the Canadian fleet and its fuel consumption • Universe: All Air Carriers 1 – Not required if already filed through CAWIS

11. New SurveyFreight Fluidity • This is a new survey to gather information on the velocity of supply chains; • Universe: air carriers who transport over 10,000t of air freight per year; • Air carriers can choose to report IATA Cargo2000 (C2K) data or transactional data;

12. Dropped Elements • As a result of consultations with industry, some data elements that were identified as priority for TC were dropped because they were judged to cumbersome for industry. This includes: • Collecting data on crew schedules and work hours; • Collecting data on maintenance; • Collecting data on on-time performance; • Collecting data on flight cancellations; • Collecting data on passengers who were denied boarding; • Collecting data on lost luggage. • Collecting data on all charter flights operators, independent of aircraft weight. • Throughout this project, TC has strived to balance its needs with the capacity of industry to report information; • Great effort has been given in attempting to make TC’s data requirements as nimble as possible.

13. Next steps • Data regulations proposal was ‘blue-stamped’ by Justice Canada on October 8th 2010. They have been submitted to the Minister for approval; • Once the proposed amendments are approved by the Minister, they will be sent to Governor-in-Council (GiC) for eventual publication in the Canada Gazette Part I; • Gazette publishing provides industry with an additional opportunity to comment on these proposed amendments; • Comments will be taken into account while crafting the final version of the regulatory amendments; • Once enacted, these changes will be –phased-in gradually. Care and effort will be giving to consult with industry on the most optimal way to implement them; • TC intends to provide air carriers with enough time and flexible technology options to implement these changes. TC is always open to discuss this project with stakeholders

14. Conclusions • Transport Canada is committed to getting better data on the transportation industry to accomplish its four strategic objectives, namely a safe, secure, efficient and environmentally friendly transportation system; • New data regulations will expand the Department’s ability to collect data. However, it also needs to ensure that new reporting requirements do not create an undue burden on air carriers. • Transport Canada has and will continue to work with industry stakeholders to craft the best data regulations possible.

15. Questions ? Alain LumbrosoSenior Economist Economic AnalysisTransport Canada - Policy(514) 633-3431 alain.lumbroso@tc.gc.ca