tcook052

http://www.newswire.ca/en/releases/a.../24/c4222.html

OTTAWA, Sept. 24 /CNW Telbec/ - The Canadian Airports Council (CAC) today
said parity of the Canadian and U.S. dollars serves to highlight competitive
challenges hurting Canada's airports. It called on the government to tackle
several policies that are negatively impacting Canadian airports and causing
Canadian passengers and cargo to choose U.S. airports instead.
"America's gain is Canada's loss," said CAC President and CEO Jim
Facette. "For quite some time we have been highlighting to the federal
government the competitive disadvantage faced by Canada's airports due to
federal policy on the aviation sector. Parity of the Canadian and U.S. dollars
is bringing this disadvantage out into the open."
Canada's airports are losing millions of passengers a year to nearby
airports across the Canadian border, which do not pay rent like airports in
Canada do and often benefit from government subsidies for infrastructure
improvements and expansions. Similarly Canadian shippers are trucking hundreds
of thousands of tons of freight across the border to U.S. airports each year.
"Competitive challenges are not new for Canada's airports, which have
invested billions in infrastructure investments in order to be well placed to
take advantage of international growth opportunities," said Mr. Facette. "It
is time for the federal government to take a hard look at its policies
impacting Canada's aviation sector or risk losing more business and jobs to
lucky U.S. border communities."
The CAC noted a "wish list" of policy areas impacting airport
competitiveness:

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- A change to rent policy to end a penalization on airports that have
prepared for growth through infrastructure expansion - or ideally the
elimination of airport rent. Airports have committed to passing on the
savings to air carriers and their passengers.
- More liberalized air service agreements for increased competition on
international air routes so that passengers and shippers will have more
options to fly through Canadian hubs instead of U.S. hubs.
- Elimination of the Air Travellers' Security Charge. Aviation security
is part of national security.
- An end to the practice of charging some airports for customs services
when demand for service warrants. Border services are an important
public service that facilitates increased international tourism and
trade.
- An examination of other tax policies negatively impacting Canadian air
carriers, which must pass these costs on to passengers.

"A more cost competitive environment for Canada's airports doesn't just
make sense as a matter of good governance, it is consistent with the federal
government's efforts to make Canada a leading international gateway," said Mr.
Facette. "We couldn't agree more with the government when it says that 'in an
increasingly connected world, the key will be an integrated approach to
physical and policy infrastructure'...an approach that encompasses 'other
interconnected issues of public policy, regulation, and operational practice
that directly impact how well the infrastructure works and how well Canada
takes advantage of it'."(*)

geoffishere

I think we can safely say there will be no progress on this file. The high Canadian Dollar should increase travel overall, which will more than offset the number of people who elect to fly from the USA.