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The Honolulu Advertiser
Posted on: Monday, October 1, 2007

Air Canada foresees rise in bookings for U.S. trips

By Hugo Miller
Bloomberg news service

Air Canada, the country's largest carrier, expects a "very good winter" for sun holiday bookings if the Canadian dollar remains strong, Chief Executive Officer Montie Brewer said Friday.

"We have seen some softness" on inbound flights from some markets because of the Canadian currency's gains, Brewer said at an investor conference in Mont Tremblant, Quebec. Air Canada, a unit of ACE Aviation Holdings Inc. is based in Montreal.

Canadians are making more trips across the U.S. border, armed with a currency that on Sept. 20 hit parity with the U.S. dollar for the first time since 1976. Overnight trips to the U.S. from Canada jumped 8.5 percent in June from a year earlier, triggered by a 17 percent gain in the value of the Canadian dollar this year.

Transat A.T. Inc., owner of Canadian charter carrier Air Transat, sees "no slowdown nor pickup" in fall bookings, Chief Financial Officer Francois Laurin said in a separate presentation. Most U.S. tourists to Canada "come by car and that's not our market," he said.

The Canadian dollar's rise has hurt tourism, Laurin said, adding, "we need, as a country, to do more to be attractive" to visitors.

Jazz Air, a regional carrier and unit of ACE Aviation, expects a "very good" third quarter, CEO Joseph Randell said in a presentation.

The Halifax, Nova Scotia-based airline is working on developing "strategic partnerships" with other carriers, though discussions are at a "preliminary stage," he said.