U.S., Canada strike tentative deal over charter-flights dispute

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WASHINGTON (AP) -- The U.S. and Canada have a tentative deal to settle a dispute over charter flights that threatened to disrupt the upcoming professional hockey and basketball seasons, Canadian Prime Minister Stephen Harper said Wednesday.

"We think we're very close to resolving that," Harper said after meeting with President Barack Obama. He said officials were working to finish details.

The U.S. has insisted that Air Canada cancel all its season-long sports charters, which would make it difficult for Canadian teams to play back-to-back games in the United States. The U.S. contends the flights violate American law because they operate within the U.S. rather than between the two countries.

The National Hockey League's regular season starts Oct. 1. Canada has teams in Montreal, Toronto, Ottawa, Calgary, Edmonton and Vancouver. The NBA begins the regular season in late October; Toronto is the lone Canadian team.

Despite the prospect of a settlement, a Transportation Department spokesman reaffirmed the Obama administration's opposition to allowing a foreign airline to carry passengers from one U.S. city to another.

The U.S. "will continue to enforce any violations," Bill Mosley said in a statement, adding that "we are close to resolving this matter."

Air Canada, which sued in federal court last week in Washington, said the U.S. law does not apply to stopover traffic. The Air Transport Association, a trade group that represents U.S. airlines, complained to the government last year that the charter flights were unlawful.

Air Canada said it has a U.S. permit that allows it to operate scheduled and charter air service between anywhere in Canada and anywhere in the U.S. The airline's Jetz unit provides business-class level charter service.

Jetz offers season-long charters for sports teams whose schedules require play in the U.S. and Canada. Initially, Jetz's clients were Canadian-based hockey teams, but it has since expanded its offering to U.S. teams in both hockey and basketball. Air Canada said that's when the opposition started.

Because of the U.S. position, Canada has enforced the rule on its side of the border.

The Toronto Blue Jays recently changed the destination of one flight to comply. The team flies with Miami Air International, a Florida company that provides charter service to five U.S.-based NHL teams, including the Stanley Cup champion Pittsburgh Penguins.

Unable to use an American carrier for a domestic flight in Canada, the Blue Jays changed their destination to Detroit and were granted approval.

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