John Manley, Canada's Deputy Prime Minister and Minister of Finance (right), announced yesterday that the government was cutting the hefty security tax from $24 (~$15.80 US) to $14 (~$9.20), for each round-trip ticket.

The fee was imposed after September 11, and was cited by Canadian airlines, particularly low-fare Zip and WestJet, as a big deterrent to their specialty -- short, low-cost trips. Those fees, added to other Canadian taxes imposed directly on operations (fuel taxes, airport fees, ATC charges, etc.), add as much as 40% to the cost for the average low-fare passenger. Hidden taxes (payroll, unemployment, medical taxes, taxes on items used in the aircraft and airline services, and hundreds more) are not included in that estimate.

"We certainly applaud the government tackling the issue and reducing the charge," Siobhan Vinish, a spokeswoman for Calgary-based WestJet, told the Reuters news service. "We think that this is more in line with their needs and those collected by other countries around the world."

Robert Melnbardis wrote, "Warren Everson, vice-president of policy and strategic planning at the Air Transport Association of Canada, an industry group, said the government must do more to help Canada's airlines cope with fees, taxes and other surcharges. 'We're pleased to see the government move somewhat, but it's only just a very modest move and unfortunately it's a time when the industry needs a lot of attention.'"

FMI: www.fin.gc.ca/comment/minfine.html