The weak economy has presented enormous challenges to the airlines
sector. These challenges have only aggravated pre-existing concerns for
Canadian air carriers around growing domestic fiscal and regulatory
burdens and subsidized competition from foreign carriers.
The NACC is urging the Government of Canada to immediately take the
following actions in order to reduce the unwarranted burden of taxes
and fees faced by Canadian airlines and their passengers:
- Eliminate airport rents.
Continued collection of
this tax on critical infrastructure hinders Canadian competitiveness
and needlessly inflates the costs associated with commercial aviation.
- Impose a moratorium on the federal domestic fuel excise tax.
By collecting this tax on a fundamental business input and directing
revenue gained into the budget at large, the government is distorting
the cost of providing domestic passenger services.
- Continue with bridge funding to the Canadian Air Transport Security Authority (CATSA).
The federal government must implement a funding model that reflects the
fact that aviation security is a public good and an essential service
in Canada, and should not be solely the financial responsibility of
Canadian air passengers.