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: 2025-08-03 to 2025-08-09

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Canadian Federal GR News

CBSA Seizes 29 kg Methamphetamine at Vancouver International Airport

On July 18, 2025, Canada Border Services Agency (CBSA) officers intercepted 29 kg of methamphetamine from a traveller’s luggage at Vancouver International Airport, with the intended destination of Hong Kong. Officers discovered the narcotics concealed in gift-wrapped packages inside two suitcases, equivalent to an estimated 150,000 individual doses. The individual—Shiyu Deng, a 25-year-old citizen of China—was charged under the Controlled Drugs and Substances Act with possession for the purpose of trafficking, possession for the purpose of exporting, and exporting a controlled substance. Deng has been remanded until their next court appearance, and the investigation continues. This enforcement action illustrates ongoing scrutiny of outbound air cargo and passenger screening processes.

Sources: Announcements: www.canada.ca

CBSA Intercepts 197 kg Cocaine from U.S. Commercial Truck at Blue Water Bridge

CBSA announced a substantial seizure at the Blue Water Bridge in Point Edward, Ontario, on July 23, 2025. Officers referred a commercial truck arriving from the United States for secondary inspection, uncovering seven bags containing 197 kg of suspected cocaine with a street value of $24.6 million. Onkar Kalsi, 29, of Caledon, Ontario, has been arrested and charged by the RCMP under the Controlled Drugs and Substances Act. The investigation is ongoing. Between January 1 and July 10, 2025, CBSA reported a total of 1,164 kg of cocaine seized from U.S. sources, with an additional 514 kg originating from other regions. These volumes signal heightened commercial border enforcement activity affecting air and ground cargo logistics.

Sources: Announcements: www.canada.ca

Government of Canada Launches Consultation on Free Trade and Labour Mobility in Canada Act

On August 7, 2025, Ottawa initiated federal consultations to develop regulations for the Free Trade and Labour Mobility in Canada Act. The proposed framework is intended to reduce federal barriers to interprovincial trade and labour mobility, by recognizing comparable provincial and territorial regulatory requirements. Upcoming regional and national consultations will collect industry and labour input to shape final regulations, with publication scheduled for fall 2025. Aviation businesses will have an opportunity to submit written submissions. Requirements and potential regulatory exceptions, including those related to health, safety, and operational standards, will be explored during this process.

Sources: Announcements: www.canada.ca

Interim Order Respecting Area 4 of the Pacific Pilotage Authority Region

On July 31, 2025, the Minister of Transport issued an Interim Order for Area 4 of the Pacific Pilotage Authority Region to address an urgent pilotage safety issue. The order, enacted under subsection 52.2(1) of the Pilotage Act, provides temporary regulatory powers over pilotage service delivery in the specified region. This enables federal authorities to respond to risks to safety, human health, or the environment pending further regulatory development. Operators and marine pilots in western Canada may see process changes as the interim regime is put in place.

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

Royal Canadian Navy Acquires Uncrewed Aircraft Systems (UAS) for Surveillance and Targeting

The Royal Canadian Navy will equip Halifax-class ships with up to six new Uncrewed Aircraft Systems (UAS) under contracts signed with MDA Space. The initial acquisition contract is valued at $39 million, with a projected $27 million in-service support commitment. The Navy forecasts that operational capability for these Class-2 UAS will commence in 2028, with full deployment by 2032. The project supports expanded maritime surveillance and targeting capacity for Canadian naval forces, with the anticipated creation or maintenance of 145 jobs annually and an $18 million GDP contribution over 20 years. The UAS procurement is part of the ISTAR-UAS initiative and is expected to advance Canada’s domestic aerospace sector capabilities.

Sources: Announcements: www.canada.ca

Government Investment Targets Tungsten-Molybdenum Supply Chain in New Brunswick

On August 7, 2025, Natural Resources Canada announced $8.2 million in federal investment for Northcliff Resources’ Sisson Project, a tungsten-molybdenum mining development in New Brunswick. The funding will support feasibility study updates and engineering design work essential for a construction decision. These minerals are considered critical for aerospace, defence, and industrial applications, offering reduced import reliance for Canadian manufacturers. The initiative is part of the federal Critical Minerals Strategy.

Sources: Announcements: www.canada.ca

Canadian Armed Forces Conduct Humanitarian Air Drop in Gaza

The Canadian Armed Forces performed an air drop of 21,600 pounds of humanitarian aid over Gaza via CC-130J Hercules aircraft as announced on August 4, 2025, by Global Affairs Canada. This operation, coordinated with Jordan, is a response to obstructed land access and pressing humanitarian needs. Government officials continue to advocate for unimpeded access for aid organizations and expedited customs clearances for relief cargo, emphasizing ongoing logistical challenges for international air transport of humanitarian goods.

Sources: Announcements: www.canada.ca

Lt.-Gen. (Ret’d) Larry Ashley Recognized for Contributions to Canadian Naval Aviation

On August 9, 2025, the government honored Lt.-Gen. (Ret’d) Larry Ashley at the Shearwater Aviation Museum in Halifax for his leadership in naval aviation and contributions to Cold War-era Air Command and NATO airborne warning programs. Ashley was the first Royal Canadian Navy officer to command Canada’s Air Force and was central to the integration of helicopters and advanced warning systems into Canada’s maritime air operations.

Sources: Announcements: www.canada.ca

US Federal GR News

FAA Amends Special Conditions for CFM International LEAP-1A and LEAP-1C Engine Models

On August 4, 2025, the FAA revised Special Condition No. 33-015-SC for CFM International’s LEAP-1A and -1C engines, which feature woven composite fan blades. The updated requirements clarify testing, marking, fleet monitoring, and containment standards for new material properties inherent in composite blade construction. CFM International is required to assess blade integrity under varied operating and environmental scenarios, document serial numbers, and implement fleet monitoring and lightning strike assessment. The scope of the amendment covers all current and future engine models with similar designs.

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

FAA Proposes Rulemaking to Supersede Airworthiness Directive on CFM LEAP-1A Engines

On August 6, 2025, the FAA issued a Notice of Proposed Rulemaking to update Airworthiness Directive 2018-19-16 for all LEAP-1A series engines following the development of new harnesses and heated pressure subsystems (PSS) designed to mitigate icing conditions affecting pressure sensor lines. The proposed amendment includes software upgrades for FADEC and prognostic health monitoring, replacement harnesses, and installation of heated PSS during the next engine shop visit. The affected directive will apply to 306 engines in the U.S. registry with estimated compliance costs outlined by the FAA. Comments are being accepted until September 22, 2025.

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

FAA Issues Final Rule Correcting Captain’s Seat Movement AD for Boeing 777

The FAA on August 6, 2025, superseded Airworthiness Directive 2024-15-03 for Boeing 777 aircraft after identifying incorrect alternate methods of compliance that resulted in possible gaps in required seat inspections. The new rule mandates serial number checks, detailed inspections, and repetitive checks of seat movement systems, referencing updated service bulletins and revised credit provisions. Impacted operators must review detailed compliance instructions, with estimated costs and process clarifications for affected fleets.

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

White House Celebrates $12.5 Billion Air Traffic Control Investment

Recent White House communications highlighted federal investment in air traffic control upgrades totaling $12.5 billion, with $100 million earmarked for training and technology enhancements. The initiative is part of President Trump’s 'One Big Beautiful Bill' signed into law July 4, 2025. Funding aims to modernize air navigation infrastructure while supporting hiring for ICE border enforcement. Transportation Secretary Sean Duffy noted that the overhaul includes technological and operational updates for air traffic management, with implementation across major hubs.

Sources: White House Announcements: www.whitehouse.gov, White House Announcements: www.whitehouse.gov

FAA Proposes Special Conditions for Pratt & Whitney Canada PW220A OEI Rating

On August 7, 2025, FAA published proposed special conditions for the Pratt & Whitney Canada PW220A turboshaft engine regarding a novel 'flat 30-second and 2-minute OEI rating,' which consolidates power requirements when one engine is inoperative in twin-engine helicopters. The conditions span engine control, recording, maintenance notification, and endurance testing for 2.5-minute rating applications, with disclosure requirements for operating limitations and post-flight inspection protocols. Comments are invited until September 22, 2025.

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

Canadian Provincial GR News

Maritime Provinces Announce New Regional Air Access Partnership

On August 8, 2025, Nova Scotia, Prince Edward Island, and New Brunswick launched a three-year partnership with PAL Airlines to offer daily flights connecting Halifax, Sydney, Charlottetown, Fredericton, and Moncton, aiming to enhance regional air connectivity. Nova Scotia will contribute $2.9 million to the joint funding pool, with ticket sales expected to commence later this year.

Sources: Provincial Announcement: news.novascotia.ca

Government Consultations

No New Federal Aviation Consultations Announced This Period

Sources:

What We're Reading This Week

• Air Canada hopes to avoid flight disruptions after attendants endorse strike mandate: Flight attendants approve strike mandate, negotiations underway.
• Video: Air Canada hopes to avoid flight disruptions after attendants endorse strike mandate: Labour developments and operational impacts discussed.
• Air Canada flight attendants approve strike mandate: Labour uncertainty for national carrier shifts attention to bargaining outcomes.
• ‘Disproportionate benefits’: Changes coming to the way Canada’s 9 million Aeroplan members can earn points: Upcoming Aeroplan policy adjustments affect loyalty program members nationwide.
• Privacy commissioner investigating WestJet cybersecurity breach: Federal investigation launched following data breach at major Canadian airline.
• Bombardier to grow private jet aftermarket service across U.S.: Bombardier outlines expansion plan for aftermarket support in US market.
• Bombardier to grow private jet aftermarket service across U.S. as company meets high customer demand: Additional context on Bombardier’s business aviation strategy.
• The Canadian drone industry is spinning up — with lessons from Ukraine: Sector insights into evolving unmanned aerial vehicle capabilities.
• Air Canada says she was being ‘loud, demanding and unruly.’ She says she was being stereotyped. Here’s what the human rights tribunal heard: Employment practices debated in Air Canada human rights case.
• Bombardier to grow private jet aftermarket service across U.S.: Demand-driven expansion covered for Bombardier in North America.

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