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Cut taxes, fees, Air Canada asks
Source: The
Canadian Press MONTREAL - Air Canada says that in 2002, the airline and its passengers will pay more than $1 billion in airport charges, fees and taxes to the federal government. In a presentation yesterday to the Commons finance committee, the airline's executive vice-president, Calin Rovinescu, said the government charges undermine the carrier's efforts to cut costs and become more efficient. He said the airline does not quarrel with the need for fees to finance airport improvements and air security, Mr. Rovinescu told the committee, collecting input for the 2003-2004 federal budget expected in February or early March. "It's just that currently, it's government itself, as well as its various mandated monopolies, such as airports, which are reaping the windfalls, while airlines and their passengers are being asked to bear the disproportionate share of the burden." From fuel excise taxes, air navigation fees, airport fees and policing to employee parking fees, "It has gotten so bad that it seems that air travel is subject to more sin taxes than tobacco or alcohol," he said. He recalled that some Air Canada Tango promotional fares recently offered at $1 also included $95 in taxes. "It goes without saying that this situation is rapidly becoming a deterrent to air travel, affecting large and small communities alike, driving up the cost of air services, forcing passengers into cars and other modes of transportation, and effectively stunting the growth of the airline industry in this country." Some airlines have curtailed some
short-haul routes as travellers drive because short flights are made far
more expensive and troublesome by security charges and airport delays and
other fees. |
