Oh, Canada... You're Charging Airlines Too Much

The Air Transport Association of America (ATA), the trade association for the leading US airlines, warns the "continued failure of the Canadian government to rationalize airport rents" threatens cross-border trade and travel, making Canadian destinations less attractive to US air carriers.

"With Canada's largest airports ranking among the most expensive in the world for airlines, it becomes extremely difficult from an economic standpoint to justify routes north of the border," said ATA President and CEO James C. May. "The rents that Canadian airports must pay to the Canadian government are irrational and cannot be justified on an economic or policy basis."

"This situation truly is unique," he added.

Canada's four largest airports -- Toronto, Vancouver, Montreal and Calgary -- rank among the top 20 most expensive airports in the world. As ANN reported recently, Toronto Pearson International Airport tops that list.

The ATA hoped the new Conservative government would act on its past commitments to reduce airport rents, particularly at Toronto Pearson... but the Canadian budget, released this week, included no such reductions.

"A rent reduction at Toronto Pearson is desperately needed. Businesses in Toronto should have easy air access to every major market in the United States. That is threatened unless the government reduces airport rents," stated May, who also noted US airlines carry approximately 58 percent of the daily passenger traffic between Canada and the United States, much of that through Toronto Pearson.

"The economies of Canada and the United States are so intertwined that ease of air travel between our two countries is critical. We should be doing everything possible to encourage the economic relationship between our countries. Rationalizing rent would help by making Canadian destinations more attractive for cross-border air travel," said May.

ATA airline members transport more than 90 percent of all US airline passenger and cargo traffic. The union is also a strong advocate of the FAA's recently announced reauthorization plan, that aims to reduce charges airlines pay for airport and ATC services by requiring general aviation traffic to shoulder a larger percentage of those costs.

FMI: www.airlines.org