U.S., Canada Loosen Aviation Restrictions

The United States and Canada announced Friday that they have agreed to loosen restrictions on cargo and passenger flights between the two countries.

The treaty will allow Canadian airlines to pick up passengers in the United States en route to other countries and for U.S. airlines to do the same in Canada.

"It will create substantial benefits for consumers by generating more choice," Robert Milton, chairman of Air Canada's parent company, said in a statement.

The agreement will also let U.S. cargo airlines pick up packages in Canada and fly them to another country, and give Canadian carriers the same right in the United States.

The agreement is expected to take effect in September.

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On the Net:

U.S. Transportation Department: http://www.dot.gov

Transport Canada: http://www.tc.gc.ca

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