The European Union decided on Oct. 2 to start negotiations with Canada on a comprehensive aviation pact, hoping to stimulate economic growth and create jobs in the air transport sector.

The European Commission was formally authorized to open the negotiations by EU transports ministers, who wrapped up their two-day meetings in Luxembourg on Oct. 2.

The aviation pact was aimed at establishing an open aviation area between the EU and Canada, opening market restrictions and achieving a high level of regulatory convergence, the ministers said in a statement.

According to the commission, such an agreement would increase the number of passengers between the two regions from the present 8 millions to 14 million by 2011. In addition, the agreement may generate consumer benefits of at least EUR72 million through lower fares and could create 3,700 jobs already in the first year.

The agreement would create the basis for airlines of both sides to fly between any EU city and Canada. Currently, Canada has bilateral air services agreements with 17 EU countries, which would be replaced by the new agreement.

The EU struck an aviation pact with the United States earlier this year after years of bargaining.