Plenary Session Sponsored by:

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Plenary Session Sponsored by
ATAC Plenary 2006Competing Mandates and
Conflicting Visions
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Toronto to Montreal on Air Canada or WestJet1
Boston to New York (JFK) on Delta2
Total tax 47.07
Total tax 19.73
4.67 vs. 2.80 for security
15.00 vs. 5.04 for AIF/PFC
Includes higher Canadian Fuel Excise taxes!
1. Air Canada and West Jet offered this fare for
a flight on November 16th at 900am.2. Delta
offered this fare for a flight on November 16th.
Figures have been converted to Canadian dollars
on October 27th at a rate of 1 USD 1.1193 CAD
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Percentage of the final ticket price that goes to
taxes.
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Fares in Canada are comparable, but the taxe
are double!
double
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Using aviation as a cash cow
2,535,170,251
1,185,983,000

• Due to the Change in the rent formula some of the
  numbers may be marginally different due a change
  in payments for 2005.
• Source Transport Canada. Letter from Paul J.
  Gauvin to then ATAC president John Crichton dated
  Feb 5, 1996.

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Source Transport Canada. Chart is derived from
the figures on the previous slide.
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Since Deregulation
Government of Canada announces changes to the
rent formula. Change does not address the need
for relief in Toronto.
Bill C-26 is introduced which included forced
domestic interling, forced access to frequent
flyer programs and CTA initiated pricing
investigations.
Government of Canada creates CATSA and the
corresponding Air Travelers Security Charge.
Government of Canada introduces war risk
insurance.
National Airports policy. GOC commercializes
major airports.
Government of Canada deregulates pricing controls.
Iraq War
Fuel costs rise
Desert Storm
83 84 90 91 94 95 96 00 01
02 03
04 05
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9/11
SARS
US air stabilization bill. USA provides bail
out funding, loans and assumes liability.
USA and Canada sign an open skies agreement for
unlimited first and second freedoms.
USA announces a Security charge to pay for
enhanced security at airports. The fee is
significantly lower than Canadas.
US government deregulates pricing (1978)
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Absorbing the shocks

• Tickets were 25.20 cheaper in 2002 vs 1990.
• Average cost in 2002 only 3.41 more than 1983.

Source Statistics Canada
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Comox air passenger Traffic
Source WestJet
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And so

• We need to reexamine our interdependent
  relationships to create an integrated aviation
  policy framework in Canada that is more globally
  competitive.
• This will improve the wealth and social
  connectivity of our population centres.
• Lets create a climate where Canadian aviation can
  compete and win for the benefit of Canadian
  travelers, shippers and the entire Canadian
  economy.

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Plenary Session Sponsored by
ATAC Plenary 2006Competing Mandates and
Conflicting Visions