Air Canada intends to challenge Qantas between Los Angeles and Sydney next year, operating fifth freedom services as part of a daily Toronto-Sydney service that will commence during the first half of 2007 when its new 777-300ERs and dash 200LRs begin arriving.Air Canada said it will use authority contained in the recent open skies agreement between the US and Canada and will apply to Canadian and Australian authorities for permission to operate the route.

Qantas previously has lobbied the Australian government successfully to keep Singapore Airlines from operating between Sydney and LAX. The government is expected to announce whether SIA will receive clearance to fly Singapore-Sydney-Los Angeles as part of its international aviation reform package in March. Most analysts believe it will agree to a phased-in program of rights for the Singaporeans to provide access to the route, which accounts for up to 20% of Qantas's international profits.

Air Canada flights will be timed to offer "convenient connection possibilities" from LAX to and from Montreal, Edmonton, Calgary and Vancouver as well as connections across the US via Star Alliance partners United Airlines and US Airways. AC already operates between the US and Australia on its Vancouver-Honolulu-Sydney service using existing route authorities.

Separately, AC lost its legal challenge to prevent its flight attendants from comparing their pay with that of pilots and mechanics. According to the Globe and Mail, the flight attendants hope to demonstrate that they are being discriminated against because of their gender. The Supreme Court of Canada, without ruling on the merits of their argument, said it is fair to compare the pay rates because all groups work at the same company. The case has dragged through the court system for 15 years, the newspaper said.