U.S., Canada Move Toward Aviation Pact : Travel: The countries agree in principle on a new accord expected to lead to lower fares and more frequent flights.

WASHINGTON — The United States and Canada have agreed in principle on a new aviation accord expected to offer lower fares and more frequent flights to millions of travelers between the two countries, U.S. Transportation Secretary Federico Pena announced Thursday.

The accord, still a few months from completion as details are worked out, will supplant a 28-year-old pact that has protected Canadian airlines to the detriment of U.S. carriers and passengers. Los Angeles travelers can look forward to more choices and more nonstop service to Canada.

Pena said a “framework for agreement” that he and his Canadian counterpart, Transport Minister Douglas Young, have adopted will serve as a basis for formal negotiations that will start next month.

Because of longstanding restrictions, nearly two-thirds of the 100 largest U.S. cities, including San Diego and Phoenix, are without nonstop service to Canada, Pena said at a news briefing. As a result, he said, many travelers must take long side trips to reach their destinations.

In addition, present rules require that most routes be served by only one airline from each country.

“We will now move full speed ahead to negotiate an agreement which will scrap our antiquated aviation accord . . . and adopt a modern agreement reflecting our mutual resolve for fully open trans-border air service,” Pena said.

Pena, citing the potential for economic growth, said 13 million air passengers traveled between the United States and Canada last year, making it the largest bilateral aviation market in the world. Nonetheless, present restrictions have kept the growth of U.S.-Canadian air travel to less than 4% a year since 1978.

In contrast, U.S. air service with France and Japan has grown four times as fast--nearly five times as fast with Germany--over the past 15 years, he said.

About 70% of the air traffic between the United States and Canada has been handled by U.S. carriers.

“Canada has only two major carriers--Air Canada and Canadian Airlines--and they have been very concerned about excessive competition from the United States,” said Stephen H. Kaplan, the Transportation Department’s general counsel.

A 12-page framework adopted by Pena and Young recommends lifting restrictions on passenger service immediately once a formal agreement is reached, except for new U.S. carrier access to three major cities: Toronto, Vancouver and Montreal. There the restrictions would be struck down in steps over three years, allowing Canadian carriers time to adjust to a fully competitive environment.

The framework provides that in each of the first two years, the United States may add six carriers operating two round-trip flights a day to Montreal and Vancouver, and may add two carriers operating two daily flights each to Toronto.

There are to be no limits on U.S. airline operations to any Canadian city after three years. Most restrictions on cargo shipped by air would be removed immediately. Upon signing the accord, Canadian carriers would gain unlimited route rights from any point in Canada to any point in the United States.

Pena said his department will begin to accept applications immediately from U.S. airlines to serve new routes.

Young said in a statement from Ottawa: “I’m very pleased our representatives have reported that they believe it’s possible to resolve the key issues that in the past have prevented Canada and the U.S. from establishing an open regime for trans-border air services. I hope Canada will be able to re-establish formal negotiations with the United States, on the basis of the consensus developed, as soon as possible in the new year.”

High-level talks to update the aviation pact started in 1991, but they dragged on without success and broke off in 1992. They resumed three months ago after both governments named special representatives to resolve the issues.

Times staff writer Craig Turner in Toronto contributed to this report.