Why do Canadians pay so much when it comes to flying?
Dec 21, 2014, 9:16 pm
#31
Join Date: Oct 2014
Location: Toronto Canada (YYZ)
Programs: Aeroplan & AA Advantage
Posts: 170
I live in Toronto Canada and the following are correct when it comes to Canadian travel:
1. Lack of competition. We only have Air Canada and Westjet.
2. High airport fees and fuel surcharges. This is the reason why a lot of travellers from Toronto fly out of Buffalo instead. For example, in my situation, taking a taxi twice (to the airport and back home) will cost over $100. Instead of paying $110 for a taxi, I drive to Buffalo. The parking there is so cheap, only $10 a day so I just park it and leave it there. Once I parked at Toronto Airport for 5 hours and got charged $60!!
3. Huge land, sparse population : we only have a population of roughly 34 million and we have the second largest land in the entire world to service.
1. Lack of competition. We only have Air Canada and Westjet.
2. High airport fees and fuel surcharges. This is the reason why a lot of travellers from Toronto fly out of Buffalo instead. For example, in my situation, taking a taxi twice (to the airport and back home) will cost over $100. Instead of paying $110 for a taxi, I drive to Buffalo. The parking there is so cheap, only $10 a day so I just park it and leave it there. Once I parked at Toronto Airport for 5 hours and got charged $60!!
3. Huge land, sparse population : we only have a population of roughly 34 million and we have the second largest land in the entire world to service.
Dec 21, 2014, 9:54 pm
#32
Moderator: Budget Travel forum & Credit Card Programs, FlyerTalk Evangelist
Join Date: Aug 2002
Location: YYJ/YVR and back on Van Isle ....... for now
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Posts: 14,428
But I do agree, population is small, distances are vast, and competition is nonexistent.
Jan 17, 2015, 7:54 pm
#34
Join Date: Apr 2002
Location: YXE
Posts: 3,050
In a nutshell, Canada does not subsidize air travel, and in fact, the federal government charges the industry many hundreds of millions a year in airport rents. Contrast this with most other nations that do provide heavy subsidies.
Nearly all of Canada's major airports have seen their passenger facilities extensively upgraded over the past decade. Meanwhile, if you visit US airports like SFO, LAX, ATL, LGA, etc., investment for the past 10-20 years has been relatively scarce.
Many Canadian airports have their infrastructure all up to date, and cash in the bank, and are now approaching the position of being able to negotiate lower fees for AIFs and with the operators. While foreign airports, its quite the opposite -- they're looking for increases, or will be as crumbling infrastructure can no longer be neglected..
If you look at the profitability of the main Canadian carriers, Air Canada and WestJet, they are not abnormally/unusually high compared to the rest of the world. Hence, it really can't/shouldn't be claimed that the market in Canada is not highly competitive.
Nearly all of Canada's major airports have seen their passenger facilities extensively upgraded over the past decade. Meanwhile, if you visit US airports like SFO, LAX, ATL, LGA, etc., investment for the past 10-20 years has been relatively scarce.
Many Canadian airports have their infrastructure all up to date, and cash in the bank, and are now approaching the position of being able to negotiate lower fees for AIFs and with the operators. While foreign airports, its quite the opposite -- they're looking for increases, or will be as crumbling infrastructure can no longer be neglected..
If you look at the profitability of the main Canadian carriers, Air Canada and WestJet, they are not abnormally/unusually high compared to the rest of the world. Hence, it really can't/shouldn't be claimed that the market in Canada is not highly competitive.
Jan 17, 2015, 8:10 pm
#35
Join Date: Jan 2010
Location: alberta canada
Programs: BA Gold,, Marriott Plat
Posts: 352
In a nutshell, Canada does not subsidize air travel, and in fact, the federal government charges the industry many hundreds of millions a year in airport rents. Contrast this with most other nations that do provide heavy subsidies.
Nearly all of Canada's major airports have seen their passenger facilities extensively upgraded over the past decade. Meanwhile, if you visit US airports like SFO, LAX, ATL, LGA, etc., investment for the past 10-20 years has been relatively scarce.
Many Canadian airports have their infrastructure all up to date, and cash in the bank, and are now approaching the position of being able to negotiate lower fees for AIFs and with the operators. While foreign airports, its quite the opposite -- they're looking for increases, or will be as crumbling infrastructure can no longer be neglected..
If you look at the profitability of the main Canadian carriers, Air Canada and WestJet, they are not abnormally/unusually high compared to the rest of the world. Hence, it really can't/shouldn't be claimed that the market in Canada is not highly competitive.
Nearly all of Canada's major airports have seen their passenger facilities extensively upgraded over the past decade. Meanwhile, if you visit US airports like SFO, LAX, ATL, LGA, etc., investment for the past 10-20 years has been relatively scarce.
Many Canadian airports have their infrastructure all up to date, and cash in the bank, and are now approaching the position of being able to negotiate lower fees for AIFs and with the operators. While foreign airports, its quite the opposite -- they're looking for increases, or will be as crumbling infrastructure can no longer be neglected..
If you look at the profitability of the main Canadian carriers, Air Canada and WestJet, they are not abnormally/unusually high compared to the rest of the world. Hence, it really can't/shouldn't be claimed that the market in Canada is not highly competitive.
Jan 17, 2015, 8:46 pm
#36
Join Date: May 2014
Location: Toronto-YYZ
Programs: Aeroplan, BA Executive- Blue, Lifemiles, AA Advantage, VIA Rail Preference, Iberia Plus
Posts: 565
I live in Toronto Canada and the following are correct when it comes to Canadian travel:
1. Lack of competition. We only have Air Canada and Westjet.
2. High airport fees and fuel surcharges. This is the reason why a lot of travellers from Toronto fly out of Buffalo instead. For example, in my situation, taking a taxi twice (to the airport and back home) will cost over $100. Instead of paying $110 for a taxi, I drive to Buffalo. The parking there is so cheap, only $10 a day so I just park it and leave it there. Once I parked at Toronto Airport for 5 hours and got charged $60!!
3. Huge land, sparse population : we only have a population of roughly 34 million and we have the second largest land in the entire world to service.
1. Lack of competition. We only have Air Canada and Westjet.
2. High airport fees and fuel surcharges. This is the reason why a lot of travellers from Toronto fly out of Buffalo instead. For example, in my situation, taking a taxi twice (to the airport and back home) will cost over $100. Instead of paying $110 for a taxi, I drive to Buffalo. The parking there is so cheap, only $10 a day so I just park it and leave it there. Once I parked at Toronto Airport for 5 hours and got charged $60!!
3. Huge land, sparse population : we only have a population of roughly 34 million and we have the second largest land in the entire world to service.
IMO, my time is worth more, but also with Buffalo, the "savings" really only apply to US domestic flights. Once you go international the savings are minimal if anything, ie. European and Asian bound flights have no savings and if anything cost more.
This has been widely reported as well.
In short, it really depends on where you travel. For me personally to go the Buffalo route is pointless.
Jan 21, 2015, 4:29 pm
#37
Original Member
Join Date: May 1998
Location: Edmonton, Alberta, Canada
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Posts: 877