For over ten years now, government taxes and fees have long been attributed as why the Canadian airports are noncompetitive prompting over 5 million passengers on a yearly basis to keep looking for cheaper flights. Airfares to North America are significantly very high when one decides to use Canadian airport as compared to other similar carriers operating in the American region. Flying from Montreal to Fort Lauderdale and spending the lowest possible amount will total approximately $247, which is 36% more if the passenger decided to use the Plattsburgh route ("- Aircanada.Com"). This explains why most of the passengers at Plattsburgh airport are Canadian. But what causes the Canadian air charges to be that high? The answer lies in taxes and surcharges as the Canadian taxes are almost twice the amount that is being charged by the USA government. Over 40% of the airfare is being used to cater for airport fees as well as the navigation alone.
This excessive taxation also comes at a steep cost as it is approximated that the Canadian airline has lost about 5 million travelers as of today (Deveau). This trend also has the effect of losing Canada over 9000 jobs annually with the economy suffering an approximated $2.4 billion each year. When compared to other countries, the Canadian airport fees are almost twice as high as what other countries are charging. Clealy, many passengers will opt for other travelling means and competitors of Canada airlines that will guarantee cheap them a cheaper alternative. The Canadian air travel suffers the most as it cannot do anything about the situation as it hopes that the government can do something about the taxation systems in the near future.
Letter
The Honourable Marc Garneau,
House of Commons, Ottawa, ON, K1A 0A6,
Dear Sir,
I would, first of all, like to take this opportunity to congratulate you for the efforts that you have put in place that are aiming to see airport fees being reduced. It is on that note that I am writing this letter and hope that you will put it under consideration and have the airport fees reduced.
First, I will like to point out that the current airport fees being as high as it is loses the country over 9000 jobs on a yearly basis. The implications that this trend has on the economy are massive. There is a high and urgent need for the airport fees to be reduced. I will recommend that various government fees such as security charges, fuel excise taxes as well as airport rent be reduced. The immediate effect of this strategy will see an increase in passenger numbers. As it currently stands, airport authorities are paying the government a rent that is proportional to what they are literally making. This is the main reason why airports increase their airport fees so as to cover for the high rent payments.
Secondly, I would also propose that ownership of airports be transferred to the non-profit authorities which will go a long way in aiding the situation. This will see the government being deprived of over $280 million that it collects but the country will stand to benefit from the increased number of passengers. The main agenda here is for your office to focus on a national strategy that will in turn see the number of passenger traffic going up. This will ensure that the county stands as a focal point for travel in emerging markets such as China.
Works Cited
"- Aircanada.Com". Aircanada.com. N.p., 2016. Web. 29 Mar. 2016.
