If I am incorrect please let me know.

Flight over 500 miles = $25.00

I was thinking of YYZ-YUL in this equation, but I disagree as to the passengers. I think this is a heavy business route with the majority of PAX going between those to cities only.

Regardless, the amount being collected even if marginally under the cost of whats used (which I am sure its not)is NOT a surcharge. A surcharge should run in the 10-20% range of consumption if it was truely a surcharge. After that it becomes a cost.