Canada’s top airline executives gathered in Ottawa on Tuesday (Oct. 29) for “Aviation Day,” a forum for highlighting priorities for Canadian air travel.
Held at the National Arts Centre, the day was jointly hosted by The International Air Transport Association (IATA) and the National Airlines Council of Canada (NACC).
In her opening remarks, Canada’s new Minister of Transport Anita Anand shared her vision for Canada’s aviation landscape, citing the need for “affordable and accessible air travel” for all.
Alexis von Hoensbroech, CEO of the WestJet Group, who attended the event to participate in an Airline CEO panel, had some thoughts to share about this statement.
Posting to his LinkedIn account later in the day, von Hoensbroech wrote that he agrees with Minister Anand’s remarks.
However: “Today’s regulatory environment doesn’t support this (yet),” the CEO wrote.
“Canada is one of the most expensive countries to operate an airline. While air fares went down by half over the last 30 years, government and infrastructure induced taxes and fees went up by 68 per cent,” von Hoensbroech wrote.
O (expensive) Canada
The CEO went on to say that air passengers have to pay up to $100 in taxes and fees on a single ticket “which makes air travel inaccessible to millions of lower income Canadians and pushes many routes below the level of viability,” he wrote.
“Especially thin routes to remote communities, hurting those people who potentially need it the most.”
This is not the first time WestJet/von Hoensbroech has spoken out about Canada’s complex and costly aviation sector.
Earlier this year, the Calgary-based airline released a set of air travel policy recommendations to the federal government.
Among them? An immediate freeze on mandatory imposed government fees, charges and policies that increase the cost of travel.
The airline has called for a review of Canada’s user-pay system for aviation infrastructure, which it says “should consider competitiveness impacts, intermodal equity, border leakage and value for taxpayers.”
von Hoensbroech explained his position further in an interview with CBC last May.
In the interview, he said air travel in Canada is “more expensive than in many other countries” because of its vast size and high infrastructure costs, which includes rising fees for airports, security, and air traffic control, plus associated taxes and fees controlled by the government.
The government’s current system is only driving up ticket prices, said von Hoensbroech.
Meanwhile, the rent Ottawa collects on airports is almost half a billion dollars per year, the CEO said, saying this money is going to the federal budget instead of being used to actually improve airports and lower fees (which would, in turn, lower ticket prices).
Reflecting on Aviation Day yesterday, von Hoensbroech said there was a “high level of consensus on what measures should be taken to improve air services in Canada.”
“It’s not rocket science,” he wrote on LinkedIn. “There are lots of best (and worst!) practices around the world to learn from”…
