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Globe says Air Canada, others hear call to lower fees

2018-06-25 07:38 ET - In the News

See In the News (C-AC) Air Canada

The Globe and Mail reports in its Monday edition that there is a panoply of fees that pump up the prices of airline tickets. Guest columnist Alexandre Moreau writes that these fees are expensive for travellers, in addition to undermining the growth of the air transport sector. Indeed, the total revenue collected by all levels of government in the form of taxes, fees, and rent -- from consumers, from airlines or from airports -- exceeds $1.5-billion a year. A substantial portion of these fees does not even respect the "user pays" principle. They are nothing more than a source of revenue for the government and put Canadian airports at a disadvantage. Usage fees paid to Canadian airports by airline companies average 50 per cent more than the average of the 10 most expensive American airports, and are nine times higher than the average of the 10 least expensive. If we reduced the burden of taxes and fees that weighs down the air transport sector, the resulting increase in economic activity and tax revenue would likely compensate for at least a portion of the lost government revenue. Taken individually, none of these taxes and fees explains the high price of tickets in Canada, but their cumulative effect is clear.

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