Rent, Border Service, Bilaterals Among Top Priorities for Canadian Competitiveness in 2007, Canada’s Airports Say

Monday, January 29, 2007 -

Rent, Border Service, Bilaterals Among Top Priorities for Canadian Competitiveness in 2007, Canada's Airports Say

OTTAWA (Jan. 29, 2007) – The Canadian Airports Council today welcomed back federal legislators with a call for the elimination of airport rent, more resources for border services and the negotiation of more liberalized bilateral air service agreements as three of five top priorities the government needs to tackle this year to promote world competitiveness for the nation’s airports.

Consistent with the Five-Point Competitive plan the CAC presented before the House of Commons Standing Committee on Finance in the fall, the CAC also is seeking an increase in funds for the Airports Capital Assistance Program and a change in regulation to allow for Arrivals Duty Free.

“Just last November, Transport Minister Cannon made a commitment to consider Canada’s position on the world stage in the field of aviation with the announcement of a new international air policy,” said CAC President and CEO Jim Facette.“Today, as we start a new year for the government, we call on the minister to honour that air policy commitment through more liberalized agreements, as well as to go further and address other hurdles to Canadian competitiveness such as the imposition of rent and the resource deficit at Canada Border Services Agency (CBSA).

Canada stands out among western nations in charging airports rent.Canada’s airports will pay nearly $290 million this year in rent tax – a heavy financial burden for which Canada’s airports receive nothing in return.The rent tax also places Canadian airports at a competitive disadvantage to U.S. airports and other modes of transportation.It serves as yoke on the ability of an airport, and the community it serves, to further invest and expand on trade opportunities.

Meanwhile, a resource strain at Canada Border Services Agency (CBSA) is threatening the ability of Canadian communities to take advantage of international opportunities for tourism and trade.Travellers at many of Canada’s airports sometimes have experienced long wait times.Meanwhile some smaller airports in Atlantic Canada, Ontario and elsewhere in the country have been unable to secure the customs resources required for proposed new international air routes into their communities.

Canada’s airports contend that both issues must be addressed if communities are to truly take advantage of international air service opportunities increasingly available to them.New air service brings competition and valuable tourism and trade links to Canadian communities, which is why Canada’s airports also are encouraging the federal government to aggressively move on its pledge of last November to negotiate more liberalized air service agreements with countries of the world.

“For Canada’s airports, 2006 was a year in which the federal government made some very positive and refreshing commitments to improve the competitiveness of Canada in the world,” said Mr. Facette.“In 2007, it is time to act on these commitments, negotiate new liberalized air agreements, resolve the CBSA resource strain that threatens the ability of communities to make use of these agreements, and once and for all eliminate the competitive disadvantage of rent.”

A shortage of funds for small airport infrastructure through the Airports Capital Assistance Program (ACAP) also negatively impact airport competitiveness with other modes of transportation, such as highways.

Meanwhile a ban on arrivals duty free in Canada means Canadian duty free operators are losing out to overseas airports and air carriers by not being able to sell duty free products to travellers to Canada arriving from overseas.

About the Canadian Airports Council

 The Canadian Airports Council (CAC) is the voice for Canada’s airports.Its 45 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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