internet Posted December 29, 2012 Share Posted December 29, 2012 And more people off to Grand Forks....The airport improvement fee at Winnipeg's James Armstrong Richardson International Airport will rise to $25 on April 1, 2013.Winnipeg Airports Authority made the decision Friday, hiking the fee imposed on every airline ticket that goes through the airport by $5.The extra money raised will go toward improving the airport’s runways, lighting and equipment, and not toward the new terminal, which opened in 2011, said airports authority spokeswoman Christine Payne.http://www.winnipegfreepress.com/breakingnews/Airport-improvement-fee-rising-to-25-in-April-185112211.html?device=mobile#container Link to comment Share on other sites More sharing options...
DEFCON Posted December 29, 2012 Share Posted December 29, 2012 What do you call an immediate 25% fee increase issued by a non-competitive entity against a largely hostage crowd? A rip-off begging for a public audit might be appropriate?If there's an exodus to Grand Forks and YWG pax revenues fall instead of increasing as they plan, will the authority recognize the folly of their ways, or just keep jacking the fees up on domestically trapped guests? Link to comment Share on other sites More sharing options...
shockwave Posted December 30, 2012 Share Posted December 30, 2012 From the Wall Street Journal. Enough Canadians flew from the U.S to fill 64 B-747's a day. Sad."Canadians Crowd U.S. Airports. Why? Taxes Miffed by Rising Fees, Canadian Travelers Flock to Nearby U.S. Airports"http://online.wsj.co...3616941712.html Link to comment Share on other sites More sharing options...
Fido Posted December 30, 2012 Share Posted December 30, 2012 Removing the AIF completely would only put a small dent in the $100 the article claims is the difference in 'fees and taxes'. The US government charges about $80 on any traveller who flys out of Canada. They do not charge anything to the guy driving across the border. Link to comment Share on other sites More sharing options...
internet Posted December 30, 2012 Author Share Posted December 30, 2012 Fee split is $34 US and $48 CAN on YYC-LAX. US fees appear the same no matter routing.Same fare (SEA-LAX) in US has $23 in fees.I agree US border fees are a problem, but double the fees in Canada vs. US is not helping.Fare 1 C$156.50Carrier AC L7XQ3TP LAX-YYCPassenger type ADTONE-WAY fareBooking code L (coach) covers:YYC-LAXCanadian Goods and Services Tax (XG) C$7.83Canadian Air Travelers Security Charge (CA) C$12.10Canadian Goods and Services Tax (XG) C$0.61US International Arrival Tax (US) C$17.00Canadian Goods and Services Tax (XG) C$1.25Calgary Airport Improvement Fee (SQ) C$25.00US Customs Fee (YC) C$5.60US Immigration Fee (XY) C$7.10USDA APHIS Fee (XA) C$5.10Cost per passenger C$238.09Fare 1 $157.21Carrier US GA21QN LAX-SEAPassenger type ADTONE-WAY fareBooking code G (coach) covers:SEA-LAXUS Transportation Tax (US) $11.79US September 11th Security Fee (AY) $2.50US Passenger Facility Charge (XF) $4.50US Flight Segment Tax (ZP) $3.80Cost per passenger $179.80 Link to comment Share on other sites More sharing options...
cavok Posted January 2, 2013 Share Posted January 2, 2013 What do you call an immediate 25% fee increase issued by a non-competitive entity against a largely hostage crowd? A rip-off begging for a public audit might be appropriate?If there's an exodus to Grand Forks and YWG pax revenues fall instead of increasing as they plan, will the authority recognize the folly of their ways, or just keep jacking the fees up on domestically trapped guests?No need for a public audit. The audited financials are openly available to the Canadian public on the WAA website and the WAA has clearly said what the increased AIF money will be used for.There are no shenanigans, secrets or clandestine cash grabs happening here. Despite popular opinion here, airport authorities are pretty transparent when it comes to having open books (they don't have to be as open as they are). Why not read them and try to understand their business before commenting on it?There are two ways for airports to fund capital projects. They can incur debt through the sale of bonds or they can raise rates and charges (with AIF being the preferred choice of the airlines rather than increased landing fees or terminal charges). In this case, I think the improvements airside will be incremental rather than all at once since. Since cash flow is required for incremental changes it wouldn't make sense to issue a bond for the full amount just to sit on the cash and pay interest.I should also point out that airport authorities can't 'save up' as a traditional business like an airline can. Airports operate on a cost recovery model and if they're keeping cash that they don't need to operate the airport that year, it's because they took it from the airlines in the form of unneeded rates and charges. This wouldn't go over well with their airline customers.The airport user-pay system was a public policy decision by the Canadian government. If you have a problem with our system vs. our neighbours to the South, call your MP. I'm sure the WAA would love to receive federal money for building RESAs and upgrading other airside infrastructure. Heck, maybe you can convince them to stop charging the airports rent! Link to comment Share on other sites More sharing options...
internet Posted January 2, 2013 Author Share Posted January 2, 2013 The problem is, and will continue to be, the perceived mismanagement of the capital spending. Many here would agree that airports do not require waterfalls, fish tanks, bronze statues and brand new trucks for everyone.These authority guys spend money like those spoiled brats on Instagram. That's what happens when you get, what is essentially taxing power as a monopoly.With at par $ even more Canadians will head south. UA didn't just add service to GFK because its the happening place... Link to comment Share on other sites More sharing options...
Dropzone Posted January 5, 2013 Share Posted January 5, 2013 And that's why I fly out of US Airports whenever I can........... Link to comment Share on other sites More sharing options...
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