Travellers Opt For Air Canada

The Air Transport Association in Washington, which speaks for US airlines, acknowledged that “several of our carriers have been impacted” by the new visa rules. However, one airline said: “We haven't seen as big a drop-off as we expected.” The US suspended its transit-without-visa programme in August 2003 as part of its intensified security since the September 2001 terror attacks. Passengers from many more countries, including Brazil, the Philippines and South Korea, now require transit visas. In addition, passengers passing through US airports face more stringent security checks and longer delays at immigration counters. Air Canada has greatly expanded its Latin American services over the past year, with the pace accelerating since it emerged from bankruptcy protection at the end of September. The airline began a daily service between Toronto and São Paulo on December 1. It has also launched flights over the past year to Peru, Chile, Argentina, Costa Rica, Venezuela and Colombia, as well as expanding services to Cuba. Air Canada's investment in Latin American routes means it is well placed to cash in at the expense of its US counterparts on the region's burgeoning trade and business ties with Asia, which were underlined by a string of recent trade pacts. Citing British Airways' decision to halt direct flights to Bogotá and Caracas next February, Mr Smith said Air Canada also aimed to carry more passengers between Heathrow and Latin America, changing planes in Canada. The new US visa requirements have also benefited Canada in other ways. Several Canadian universities are seeking to attract foreign students and researchers who might otherwise have attended US institutions. Canada has also become a base for some offshore outsourcing companies to serve US customers without their employees needing to enter the US. Nevertheless, many other Canadian companies, are concerned that tighter border security could severely jeopardise their business in the US.