The principles recommended as a basis lor civil aviation policy are: (1) In the international field, air services provided by Canadian air lines should serve the Canadian interest as a whole; these services should not be competitive or conflicting, but should represent a single integrated plan, which could be achieved by amalgamation, by partnership or by a clear division of fields of operations. (2) In the domestic main line field, while the principle of competition is not rejected, any development of competition should not compromise or seriously injure the economic viability of T.C.A.'s main line domestic operations which represent the essential framework of its network of domestic services. In other words, there must not be the kind of competition which would put T.C.A. into the red; and, in the event that competition continues, the air transport board should ensure an opportunity for growth to both lines above this basic minimum. (3) In formulation of policy based upon the foregoing point, a reasonable role for regional air carriers providing scheduled and regular air service must be established; this role must provide for a relationship between the regional air carriers and T.C.A. (and any other licensed main line transcontinental carrier) which will give the regional air carriers a reasonable chance to operate without government subsidies. April 24, 1964.
Monday, May 4, 1964