The federal and provincial government’s are being urged to look at a new study that concludes taxes are hurting air carriers and travellers.
Massimo Bergamini, President and CEO of the National Airlines Council of Canada, says a report from the Montreal Economic Institute should be a wake up call for governments.
“The current system hurts travelers, and it hurts Canada’s competitiveness.”
The report shows Canada ranks near the bottom of industrialized nations when it comes to that competitiveness
Bergamini says one of the biggest obstacles is the huge rents that airports are forced to pay.
“I think we can start by the federal government getting out of charging airport rents, which are passed on to airlines and to travelers. You take that basic price of a ticket one-way from Calgary to Edmonton, if you reserve it two weeks in advance, you can purchase the ticket for about $150, $160. There’s about $60-$70 of that is made up of different government fees and taxes.”
Bergamini adds the federal government continues to treat air travel as a luxury — even though Canada’s vast geography makes air travel a necessity in this day and age.