Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for the airline and airports industry, as well as pilots and other aviation-professionals. Every Monday, we break down the most important updates in this space in under five minutes.

Want to track the upstream and downstream forces affecting Aviation? Don’t miss this week’s updates in Freight & Ports and Oil & Gas.

Dates: 2025-07-20 to 2025-07-26

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 📚 What We're Reading This Week

Canadian Federal GR News

CBSA Reports Major Illicit Drug Seizures at Calgary and Windsor Airports

CBSA officers at Calgary International Airport reported the interception of over 160 kg of cannabis destined mainly for export over the past year, valued at over $1.2 million. Details released on July 23 included multiple finds: on July 12, officers seized 12.29 kg of cannabis from a Canadian citizen’s suitcase; on May 13, 17.5 kg from a traveller arriving from Hong Kong; and in October, 31.6 kg from a stopover passenger from Vancouver, where agents also found fentanyl and cocaine. Calgary Commercial operations noted interceptions of smaller cannabis parcels declared with false documentation, bound for various European destinations. Penalties for such cross-border offences can include up to 14 years’ imprisonment. Separately, CBSA at Windsor’s Ambassador Bridge intercepted 187.5 kg of suspected cocaine in a commercial truck from the United States, with the driver transferred to RCMP custody and criminal charges laid for importation and possession for trafficking. The investigation is ongoing.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Minister Sidhu Engages Aerospace and Airport Stakeholders in British Columbia

Minister of International Trade Maninder Sidhu met with provincial and industry leaders from July 17–21 in British Columbia. The minister’s itinerary included a keynote at the Surrey Board of Trade, where he provided updates on Team Canada Trade Missions and the Indo-Pacific Strategy aimed at expanding Canadian exports. Minister Sidhu met with his new B.C. counterpart, Minister Ravi Kahlon, to discuss federal-provincial collaborations, and participated in a round-table at the Business Council of British Columbia on energy sector growth. He toured the Port of Vancouver, discussing the port’s role in supply chains and exports, and visited OSI Maritime Systems and LNG Canada. Notably, Minister Sidhu held discussions with Tamara Vrooman, President and CEO of Vancouver International Airport, on cargo capacity and international connectivity priorities. Other stops included a site visit with KF Aerospace in Kelowna, focusing on local aerospace export experiences and sector challenges.

Sources: Announcements: www.canada.ca

Canadian International Trade Tribunal Terminates Anti-Dumping Inquiry for Turkish Steel Sheet

The Canadian International Trade Tribunal announced on July 21 that it has terminated its final injury inquiry concerning the dumping of corrosion-resistant steel sheets originating in or exported from Türkiye, after CBSA determined on July 16 that dumping did not occur and ended its investigation. The Tribunal’s move brings closure to the process required under Canadian law for trade remedy cases, and the relevant order affects importers, steel purchasers, and downstream manufacturers. The Tribunal continues to hear disputes involving anti-dumping, federal procurement, and tariff appeals for Parliament via the Minister of Finance.

Sources: Announcements: www.canada.ca

StatsCan: Canadian Air Travel and Aircraft Movements Drop in May

Statistics Canada reported a 1.8% decrease in passengers carried by major Canadian airlines on scheduled and charter flights in May 2025 compared with May 2024, with a total of 7.1 million passengers. Weekly aircraft movement data for July 5–11, 2025, are also available, facilitating fleet and operational planning. International arrivals data showed a 5.6% year-over-year drop in trips to Canada by US residents and a 6.6% decrease for overseas travellers in May, signaling continued volatility in cross-border travel and tourism demand.

Sources: Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca, Open Government Data Set: www.statcan.gc.ca

CITT Reviews Complaint over DND Wildlife Control Procurement

The Canadian International Trade Tribunal is conducting an inquiry following a complaint by West Coast Wildlife Control Services regarding a Department of Public Works and Government Services Canada procurement on behalf of DND. The complaint alleges the successful bidder did not meet mandatory requirements, and challenges the technical evaluation’s fairness. Inquiry proceedings will determine if the awarding process gave improper advantage under federal procurement law.

Sources: Gazette, Part I: www.gazette.gc.ca

US Federal GR News

FAA Modernizes Light-Sport Aircraft Certification and Sport Pilot Privileges

The FAA finalized the Modernization of Special Airworthiness Certification (MOSAIC) rule, effective October 22, 2025, with some provisions effective July 24, 2026. The rule expands the range and size of aircraft eligible for certification under light-sport category, removes prescriptive weight restrictions, and allows for new engine types, performance parameters (up to 250 knots CAS for maximum speed, up to four seats for airplanes), and certain commercial aerial work. Maintenance and repairman privileges for light-sport aircraft were also broadened. The rule provides for voluntary compliance with part 36 noise standards and permits manufacturers to use consensus standards for certification, design, and noise compliance. Training and operational requirements for sport pilots are similarly expanded, including night operations with additional training. The FAA’s regulatory cost-benefit analysis anticipates benefits to manufacturers and pilots through cost savings and increased aircraft certification flexibility.

Sources: U.S. Federal Announcements: www.federalregister.gov

FAA Issues Airworthiness Directive for CFM International LEAP-1B Engines

The FAA published a final airworthiness directive (AD 2025-14-08) effective August 25, 2025, for CFM International LEAP-1B engine models. The directive requires operators to replace certain high-pressure turbine rotor stage 1 disks manufactured with suspected iron inclusion, and expands applicability to include additional affected parts. Operators are instructed to remove and replace specific parts at the next exposure or within set cycle thresholds. This action supersedes a prior AD and responds to manufacturer findings on material quality. The FAA estimates 51 engines of US registry are affected and provides compliance instructions based on updated CFM Service Bulletins.

Sources: U.S. Federal Announcements: www.federalregister.gov

FAA Final Rule: AD for Airbus SAS Model A350 Series – Center Wing Box Fasteners

A new FAA airworthiness directive, effective August 25, 2025, applies to certain Airbus A350-941 and -1041 aircraft. The rule requires replacement of fasteners and application of additional head nut cap protection at the front and rear spars in the center wing box, following expanded applicability based on updated manufacturer serial numbers identified by the European Union Aviation Safety Agency (EASA). The updates align with EASA AD 2024-0161 and correspond to safety actions mandated after additional risk of fastener loss and sealant cracking was identified. Compliance will affect 34 US-registered aircraft, with an estimated per-aircraft compliance cost of up to $24,771.

Sources: U.S. Federal Announcements: www.federalregister.gov

FAA Issues Multiple Boeing 737 Safety Directives and Proposes Further Crack Inspection Requirements

The FAA published a final airworthiness directive (AD 2025-15-01) for all Boeing 737 Next Generation series aircraft, effective August 25, 2025, requiring repetitive inspections for cracking of fuselage frames at specific stations and repairs as needed. Separately, proposed ADs have been released for 737-700/-700C and -800 series to address fuselage skin cracking at chem-mill and crown skin areas, lowering inspection thresholds and intervals, and updating post-modification inspection requirements. The FAA cites new data showing faster fatigue crack growth, prompting these regulatory actions. Estimated compliance costs range from $765 to $3,315 per inspection cycle, depending on aircraft series and scope of work. The NPRMs are open for comment through early September.

Sources: U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov

FAA Issues AD for BRP-Rotax Engines: Oil Spray Nozzle Inspection and Generator Stator Action

The FAA issued AD 2025-15-03, effective August 6, 2025, which supersedes a previous directive for certain BRP-Rotax 912 and 915 engine models. The directive requires operational checks of the battery backup function, one-time inspection of the oil spray nozzle, and, depending on findings, generator stator assembly inspection and part replacement. The new rule revises procedures to make stator inspection an on-condition action, following feedback on the manufacturer’s service bulletins and operational risk of oil nozzle blockage and potential generator failure. Compliance affects 25 engines on US aircraft, with estimated inspection costs of $765 each.

Sources: U.S. Federal Announcements: www.federalregister.gov

What We're Reading This Week

• Porter Airlines E195-E2 Pilots Begin Training in Montreal With New Embraer CAE Training Services (ECTS) Full-Flight Simulator: Porter pilots commence training on Embraer's E195-E2 at CAE's Montreal facility with a new full-flight simulator.
• ‘Drift’ in training contributed to near-miss at Calgary International Airport: TSB: TSB finds training lapses were a factor in a near-miss incident at Calgary International Airport.
• Traffic stop near airport uncovers ‘significant’ amount of suspected drugs, imitation firearm: Police seize drugs and an imitation firearm during an airport-area traffic stop.
• Honeywell raises 2025 forecasts on sustained demand for aerospace parts, services: Honeywell increases its outlook for parts and services, citing persistent aerospace market demand.
• Shipbuilding, aerospace to be priorities in federal strategy to transform defence sector, Joly says: Melanie Joly signals federal focus on shipbuilding and aerospace in defence transformation planning.
• Aircraft maker Textron tops profit estimates on strong aftermarket service, Bell demand: Textron reports stronger-than-anticipated profits on aftermarket services and robust demand for Bell products.
• American Airlines restores 2025 forecast, flags economic worries for keeping it broad: American Airlines maintains its 2025 projections but notes broad economic concerns.
• LanzaTech Awarded Significant Grant by UK Government to Propel Sustainable Aviation Fuel Production: UK government grant to LanzaTech supports new sustainable aviation fuel production.
• The rise and legacy of Pierre Jeanniot – from technician to president and CEO of Air Canada: The Globe and Mail traces Pierre Jeanniot's long career at Air Canada.
• Boeing 767 scribe line crack inspections proposed by FAA: FAA proposes detailed and nondestructive inspections for scribe-line cracking on certain Boeing 767s.

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