OT: "Unfair Double Standard," Canada's Airports Decry Continued Subsidization of Via
http://www.newswire.ca/en/releases/a.../11/c3120.html
OTTAWA, Oct. 11 /CNW Telbec/ - The Canadian Airports Council (CAC) today decried the continued subsidization of Via Rail to the tune of nearly $692 million while Canada's aviation sector suffers from competitiveness challenges. "Canada's civil aviation sector already suffers a serious competitive disadvantage to other modes of travel and airports across the border in the U.S. due to airport rent and other forms of high taxation," said CAC President and CEO Jim Facette. "Canada's airports generate some $30 billion in economic output and employ more than 150,000 people while facilitating international and domestic trade and tourism. To pump millions of dollars into a competitor is inexplicable." The statement comes after it was announced today that the federal government will provide $691.9 million in capital and operating funding to Via Rail. While shouldering the financial responsibility of more than $9.5 billion in capital improvements over the past decade, Canada's airports pay nearly $300 million a year in the form of rent to the federal government. In addition to rent, which is passed on to airlines and their passengers, the government burdens civil aviation with fuel excise taxes, the air traveller's security charge and other tax and regulatory costs. "Canada's 100 million air travellers a year will pay nearly $300 million in rent this year while the government pours nearly $700 million to benefit Via Rail's 4.1 million passengers, said Mr. Facette. "This is a double standard that clearly must end." |
Pouring money into VIA is basically burning money.
Until I see high-speed trains operating, VIA is still the little train that couldn't. What the government should have done is scrap the rents they charge to the airports! :mad: |
We in the west get zero benefit from VIA.
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Originally Posted by Altaflyer
(Post 8547936)
We in the west get zero benefit from VIA.
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Originally Posted by tcook052
(Post 8547495)
"Canada's civil aviation sector already suffers a serious competitive disadvantage to other modes of travel and airports across the border in the U.S. due to airport rent and other forms of high taxation," said CAC President and CEO Jim Facette. "Canada's airports generate some $30 billion in economic output and employ more than 150,000 people while facilitating international and domestic trade and tourism. To pump millions of dollars into a competitor is inexplicable...This is a double standard that clearly must end."
Does the CAC complain when the government does road repairs as well? Paving the 401 is subsidizing the competition as well, isn't it? |
Just more instances of an uneven playing field, IMHO, GregW, like today's news that the Alberta government is moving the Alberta Treasury Branch, a crown corp. at-arms-length financial institution, pay taxes which it's been exempt from until now. AC is also regulated by it's federal legislation which other airlines are not. That Via probably couldn't survive without being subsidized is another debate for another thread on another day...;)
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Originally Posted by GregWTravels
(Post 8549346)
Last time I tried to fly Toronto to Aldershot, I couldn't find any decent flights...
The airports have more money than they know what to do with. The federal rents are a bit of a problem, but I have a hard time believing we'd see an elimination of the AIFs if the rent charges disappeared. |
Originally Posted by GregWTravels
(Post 8549346)
Does the CAC complain when the government does road repairs as well? Paving the 401 is subsidizing the competition as well, isn't it?
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