Thu, Dec 23, 2004
Says Its Costs Are Going Up While Other Countries Get More
Competitive
While Canada continues
to force the cost of flying and landing aircraft ever higher,
Germany will drive down those costs and make that country more
competitive, the Air Transport Association said today. The German
Transport Ministry announced yesterday that airport landing fees
will drop 28% on January 1, 2005 and air navigation overflight fees
will fall about 20%.
"Meanwhile in Canada the federal government continues to drive
up airport fees by imposing ever-rising rental charges," says Cliff
Mackay, the association's President. "Airport rent will rise
another 30% in Montreal on January 1st. Landing fees at the key hub
in Toronto will rise again next month by 17%. We've faced two
substantial increases in air navigation charges since 9/11. The
trend is clear across the country."
"Canada's future depends on increasing our economic
competitiveness," Mackay commented. "Increased costs in air
transportation multiply down through all the industries that buy
our services, creating a substantial drag on the economy. This
costs jobs and suppresses growth. But meanwhile other countries
stimulate their economies by driving down these fixed costs."
The Air Transport Association has called on the government to
freeze its rent demand at 2004 levels, pending a Cabinet debate on
the future of the program. Without changes the annual rental rate
is scheduled to rise to nearly one half-billion by the end of the
decade.
"Airports are some of the most important generators in a city's
economy,' Mackay said. "This federal government has made its cities
agenda a center-piece of its policies, and yet it continues to
target the airports as cash cows. It's completely illogical. Our
government has to take note of moves such as the Germans are making
and recognize that efficient transportation pays off across the
economy."
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