NZ, Canada in air deal

New Zealand and Canada have negotiated a new, open Air Transport Agreement, says Prime Minister Helen Clark.

The agreement was completed at a meeting between Helen Clark and Canadian Prime Minister Stephen Harper at the Apec summit meeting in Sydney.

"The new arrangements will remove restrictions on both the routes and frequency of services flown by New Zealand and Canadian airlines," Helen Clark said.

She said New Zealand airlines would also have the option of providing services to Europe via Canada.

Air New Zealand is to start a non-stop service to Vancouver at the beginning of November and Helen Clark said the inaugural flight would be used for a trade mission.

- NZPA