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“Unfair Double Standard,” Canada’s Airports Decry Continued Subsidization of Via Rail

Thursday, October 11, 2007 -

“Unfair Double Standard,” Canada’s Airports Decry Continued Subsidization of Via Rail

Via Rail receives millions in subsidies from the federal government
while the civil aviation sector pays rent, fuel and other taxes

OTTAWA (October 11, 2007) – 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.”

About the Canadian Airports Council

The Canadian Airports Council (CAC) is the voice for Canada’s airports.Its 47 members encompass more than 150 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation’s air cargo and international passenger traffic and 95% of domestic passenger traffic.They create well in excess of $30 billion in economic activity in the communities they serve.And more than 150,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.


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For more information:

Daniel-Robert Gooch,
Director of Communications
Canadian Airports Council
(613) 560-9302 ext 16
daniel.gooch@cacairports.ca