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: 2025-08-17 to 2025-08-23

📋 In This Week's Newsletter

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

Canadian Federal GR News

Air Canada Operations Resume Following Federal Government Intervention

Air Canada's operations, which were suspended amid a strike and federal government involvement, resumed service during the week of August 17-22. Several news outlets reported continued travel disruptions for passengers, with ongoing concerns around customer rights, travel insurance, and compensation. Air Canada announced its intent to cover certain transportation costs for affected customers and published updated details on flight attendant pay. Public discussion centered on management's handling of the dispute, with criticism in national media over labor relations and consumer protections. Media coverage addressed strike effects on scheduling, insurance coverage, and implications for travelers experiencing interruptions or cancellations.

Sources: Canadian News Outlet: www.ctvnews.ca, Canadian News Outlet: www.ctvnews.ca, Canadian News Outlet: www.cbc.ca, Canadian News Outlet: www.theglobeandmail.com, Canadian News Outlet: www.theglobeandmail.com, Canadian News Outlet: www.theglobeandmail.com, Canadian News Outlet: www.ctvnews.ca, Canadian News Outlet: www.ctvnews.ca, Canadian News Outlet: www.thestar.com, Canadian News Outlet: www.theglobeandmail.com

Government of Canada Launches Consultation on Unpaid Work in Airline Sector

Minister Patty Hajdu announced a probe into unpaid labor practices in the airline sector, focusing particularly on allegations affecting federally regulated flight attendants. The inquiry will examine whether current pay conditions align with Canada Labour Code requirements. Employment and Social Development Canada will begin targeted engagement with stakeholders to inform the consultation process. At the close of public input, the government will publish a summary report detailing findings relevant to workplace compensation standards. This initiative signals increased scrutiny of employment practices in commercial aviation and may affect reporting and workforce policies for airlines operating under federal jurisdiction.

Sources: Announcements: www.canada.ca

CBSA Executes Large Firearms Seizure in St-Anicet

The Canada Border Services Agency, in cooperation with the Sûreté du Québec, conducted a search in St-Anicet on August 6, resulting in the seizure of 180 long guns, several prohibited weapons, thousands of rounds of ammunition, cash, and electronic devices. The investigation was initiated in May following CBSA’s interception of firearm parts at the Montreal Mail Centre. A local resident with a prior customs history was arrested, and further analysis of the seized items is underway. Charges are to be recommended to federal prosecutors upon the completion of the investigation. The CBSA stated its continued commitment to preventing illegal weapons trafficking through Canadian border facilities, with direct implications for aviation-related customs operations and enforcement practices.

Sources: Announcements: www.canada.ca

Minister Joly and Secretary of State Fuhr Conduct Strategic Industrial Visits in Sweden and Finland

Minister Mélanie Joly and Secretary of State Stephen Fuhr undertook official visits to Stockholm and Helsinki from August 18-22 to advance strategic industrial partnerships. The trip centered on reinforcing bilateral relationships in aerospace, defence procurement, and industrial investment. Canadian agencies engaged with European government officials and business leaders to address collaborative opportunities in shipbuilding, biomanufacturing, telecommunications, and aerospace, including commercial aviation and defence sectors. The delegation signaled intent to pursue major economic commitments in aviation-related manufacturing and procurement, with potential for expanded market access and investment flows impacting Canadian aerospace firms.

Sources: Announcements: www.canada.ca

Statistics Canada Publishes Quarterly Civil Aviation Revenue Figures

StatsCan released figures for the first quarter of 2025, showing operating revenue for 24 large Canadian air carriers at $8.3 billion—a 0.5% year-over-year decrease. The dataset provides a basis for benchmarking carrier performance and informs broader economic assessments of the civil aviation sector. Stakeholders may reference this for financial planning and comparative analysis.

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

Statistics Canada Releases Data on International Travel Patterns

In June 2025, for the first time since 2006 (excluding the COVID period), StatsCan reported more U.S. residents visited Canada than Canadian residents crossed into the United States. This reversal presents implications for air passenger traffic volumes, cross-border travel corridors, and commercial aviation demand.

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

Statistics Canada Publishes Weekly Aircraft Movements Data

New data documenting itinerant aircraft movements across Canadian airports for the week of August 2-8, 2025, have been released. The figures provide operators and service providers with up-to-date traffic volumes relevant for resource allocation and operational planning.

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

Canadian Space Agency Opens Media Accreditation for Artemis II Mission Briefings

The Canadian Space Agency issued media accreditation procedures for upcoming Artemis II mission briefings. Stakeholders in the aerospace sector and news organizations may apply for access to mission updates, with details relevant for public outreach and industry communications.

Sources: Announcements: www.canada.ca

US Federal GR News

FAA Proposes Airworthiness Directive for ATR Avions de Transport Régional Airplanes

On August 21, the FAA issued a notice of proposed rulemaking covering specific ATR aircraft models, prompted by discovery of disconnected cargo compartment fire-extinguishing tubes during inspections. The directive mandates functional checks of the aft cargo fire extinguishing system and outlines required actions to correct any discrepancies. It incorporates EASA AD 2025-0080 by reference for compliance, affecting 103 U.S.-registered aircraft. Operators are to submit comments by October 6, 2025, and compliance costs are estimated at $85 per aircraft for required checks. Additional costs may apply for corrective actions, and the FAA clarified that special flight permits will be subject to cargo restrictions.

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

FAA Proposes Airworthiness Directive for MHI RJ Aviation ULC (Bombardier) Regional Jets

The FAA announced a new airworthiness directive for all MHI RJ Aviation ULC regional jet models, requiring updates to maintenance programs to incorporate new or more restrictive airworthiness limitations announced by Transport Canada (AD CF-2024-41). The proposal is in response to reduced structural integrity and controllability concerns. Compliance costs are estimated at $7,650 per operator for maintenance documentation revision, with estimated impact to 600 aircraft. Actions required terminate certain previous directives and introduce new critical inspections and configuration control limitations. Comments are due by October 6, 2025.

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

FAA Proposes New Maintenance Limits for Gulfstream Aerospace LP Aircraft

On August 21, the FAA published a notice of proposed rulemaking for all Gulfstream Aerospace LP Model Gulfstream 100, Astra SPX, and 1125 Westwind Astra airplanes. The directive requires updating inspection programs to reflect new airworthiness limitations for nose landing gear actuator attachment pins, per Israeli Civil Aviation Authority AD ISR I-32-25-01-7. Compliance is estimated at $7,650 per operator, with comments accepted until October 6, 2025. Non-compliance could result in nose landing gear failure affecting retraction and landing functions.

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

FAA Issues Final Rule for Airbus SAS High-Pressure Bleed Valve Inspection

On August 22, the FAA corrected its recent directive for Airbus SAS A319, A320, and A321neo family aircraft, requiring revision of airplane flight manuals and minimum equipment lists regarding high-pressure bleed valves (HPV). The rule implements procedures and correction to the reference of EASA AD 2025-0096, affecting regulatory text concerning MEL updates. The AD mandates repetitive HPV inspections and outlines optional replacement provisions. The correction clarifies reporting and compliance instructions for operators overseeing affected fleets.

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

White House Announces U.S.–EU Agreement on Reciprocal, Fair, and Balanced Trade

On August 21, the White House issued a joint statement announcing a framework agreement between the United States and European Union focused on trade in industrial goods, agriculture, aircraft, and energy equipment. The agreement features mutual tariff adjustments affecting aerospace products and addresses regulatory issues in procurement, standards, and supply chain resilience. EU commitments include procurement of U.S. defense and space sector goods, as well as expanded market access for AI chips and liquified natural gas. The joint framework includes provisions for alignment on cybersecurity, intellectual property, labor rights, digital trade, and export controls, with implementation pending completion of internal procedures in both jurisdictions.

Sources: White House Announcements: www.whitehouse.gov

Government Consultations

What We're Reading This Week

• Air Canada operations remain suspended amid federal government intervention: Coverage on the impact of federal involvement in airline operations during labor action.
• Air Canada resumes service but travel worries continue: News on operational resumption and ongoing challenges for travelers.
• Travel plans dashed by Air Canada strike? You may have more rights than you think: Analysis of passenger rights related to strike disruption.
• Opinion: Air Canada management strike — CUPE flight attendants: Commentary on labor relations at Air Canada.
• Business Brief: Checking our flight status: Recap of flight disruptions and new operational updates.
• Air Canada to cover certain transportation expenses for some customers: Details of customer compensation measures by the airline.
• Business Brief: The price of protecting Air Canada: Review of the resources vested into stabilizing carrier operations.
• Opinion: Air Canada, the airline oligopoly and the abused consumer: Editorial on industry competition and consumer experiences.
• Air Canada strike raises travel insurance concerns: Coverage of insurance implications for affected travelers.
• Here’s what Air Canada is offering to pay flight attendants: News on proposed flight attendant compensation following labor dispute.

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