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But the board’s report didn’t rest the entire blame on federal fees and taxes. It also noted that Canadian carriers are less competitive than their U.S. counterparts. This is due to their higher labour, fuel and aircraft ownership costs as well as lower aircraft utilization contributing roughly 50% of the cost differential with their U.S. counterparts. Airport fees amounted to 25% of the difference, the board said. Combined this left Canadian carriers at a 30% cost disadvantage to their U.S. counterparts, leading to higher fares. (via fp) Canadian carriers are less competitive than their U.S. counterparts. This is due to their higher labour, fuel and aircraft ownership costs as well as lower aircraft utilization contributing roughly 50% of the cost differential with their U.S. counterparts. Airport fees amounted to 25% of the difference, the board said. Combined this left Canadian carriers at a 30% cost disadvantage to their U.S. counterparts, leading to higher fares. there are also a lot of questions about whether the highly subsidized U.S. airport system is sustainable given the current economic situation there, said Vijay Gill, who authored the report. “We have a viable system, and they don’t,” he said in an interview. “The U.S. does not have a fully-funded infrastructure. They’re subsidizing it … there’s also a huge gap that they’re going to have to make up somehow.” Mr. Gill said the U.S. will be likely be left with a choice between increasing its airport subsidies, or increasing their own airport fees. in the early 1990s, the operations of country’s largest airports were handed over to various airport authorities so that they could be run in a more business-like manner. The federal government, however, retained ownership of the land the airports sat on, and has been charging them rent, which is passed onto flyers as a user fee. An estimated $2.5-billion has been collected from the country’s various airport authorities since, which has become a bone of contention for Canadian carriers as well. (..) ground rents average about $3 a passenger nationally, ranging from 77¢ a person in Edmonton to $4.63 a person at Pearson. See also 5 million Canadians a year cross border to catch cheaper flights

But the board’s report didn’t rest the entire blame on federal fees and taxes. It also noted that Canadian carriers are less competitive than their U.S. counterparts. This is due to their higher labour, fuel and aircraft ownership costs as well as lower aircraft utilization contributing roughly 50% of the cost differential with their U.S. counterparts. Airport fees amounted to 25% of the difference, the board said. Combined this left Canadian carriers at a 30% cost disadvantage to their U.S. counterparts, leading to higher fares. (via fp)

  • Canadian carriers are less competitive than their U.S. counterparts. This is due to their higher labour, fuel and aircraft ownership costs as well as lower aircraft utilization contributing roughly 50% of the cost differential with their U.S. counterparts. Airport fees amounted to 25% of the difference, the board said. Combined this left Canadian carriers at a 30% cost disadvantage to their U.S. counterparts, leading to higher fares.
  • there are also a lot of questions about whether the highly subsidized U.S. airport system is sustainable given the current economic situation there, said Vijay Gill, who authored the report.
  • “We have a viable system, and they don’t,” he said in an interview. “The U.S. does not have a fully-funded infrastructure. They’re subsidizing it … there’s also a huge gap that they’re going to have to make up somehow.” Mr. Gill said the U.S. will be likely be left with a choice between increasing its airport subsidies, or increasing their own airport fees.
  • in the early 1990s, the operations of country’s largest airports were handed over to various airport authorities so that they could be run in a more business-like manner. The federal government, however, retained ownership of the land the airports sat on, and has been charging them rent, which is passed onto flyers as a user fee. An estimated $2.5-billion has been collected from the country’s various airport authorities since, which has become a bone of contention for Canadian carriers as well. (..) ground rents average about $3 a passenger nationally, ranging from 77¢ a person in Edmonton to $4.63 a person at Pearson.

See also 5 million Canadians a year cross border to catch cheaper flights

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