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Airport Fees Anger Airlines


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Foreign airlines balk at rising airport fees

Some threatening to divert traffic from Canadian runways

By SIMON TUCK

Monday, November 8, 2004 - Page B4

OTTAWA -- Foreign airlines have jumped into the debate about the high cost of the domestic aviation system, with some threatening to divert international traffic away from Canadian airports -- Toronto's Pearson International Airport in particular -- if fees aren't lowered.

The foreign-based airlines say the cost of landing at Pearson has skyrocketed in recent years and some of them are now looking for alternatives. The airline industry expects they will be hit with another landing fee increase in the coming week or so.

Stanley Morais, El Al's general manager in Canada, said the Israeli airline has already switched to smaller aircraft to serve Toronto as a cost-saving move, and is now considering forgoing its Tel Aviv-Toronto flights in favour of those that land at New York's John F. Kennedy International Airport.

Mr. Morais said El Al isn't the only foreign-based operation considering such a move.

"If your costs become unbearable, you simply pull out of that place," he said.

The airlines have kicked off a new effort to address their concerns by lobbying specific federal politicians, particularly Liberal MPs and cabinet ministers from Toronto. The foreign airlines, like their domestic counterparts, hope that if they can convince Ottawa to lower or eliminate the rent that it charges airports, then the airports will pass that savings on to the airlines.

The airlines' lobbying strategy has been to target particular politicians, either because of the elected official's ethnicity or because of their riding.

Jim Karygiannis, who is of Greek background and is parliamentary secretary to Transport Minister Jean Lapierre, held a recent meeting with officials from Olympic Airlines, the national airline of Greece. International Trade Minister Jim Peterson, whose Willowdale riding has a large Jewish community, met with El Al's Mr. Morais.

Mr. Karygiannis said the airlines' threat to reduce or scrap their Toronto services is a big concern for him and many of his constituents.

"I want to make sure my parents can fly from Athens to Toronto," he said. "We need to serve our ethnic communities."

Transportation services are also an important economic pillar, not to mention an industry unto themselves.

"They've raised legitimate concerns that affect trade and Canadian business," said Jacqueline LaRocque, a spokeswoman for Mr. Peterson.

The foreign airlines' lobbying effort marks the latest salvo in a bitter battle between the airline industry and the Greater Toronto Airports Authority, which runs Pearson.

The airlines say landing fee increases of 29 per cent last year and 27.7 per cent this year aren't justifiable.

The GTAA says the airlines have always known they would have to pay significantly higher fees to help finance the new $3.6-billion terminal, part of a $4.4-billion capital program at the airport. The airport authority has also argued that the airlines -- and their customers -- are getting better services for what they pay.

Mr. Lapierre has said that he's interested in looking at the possibility of lowering airport rents, as part of a larger campaign to update Canada's airline industry and make the key players that much more competitive.

Mr. Lapierre asked the Commons transport committee last week to conduct a major review of Canada's air policies, while suggesting that it's time to open up competition and reduce regulation, perhaps even relaxing restrictions on the foreign ownership of Canadian airlines.

He also said the time may be right for Canada to take new steps toward liberalizing its air system, perhaps even going far beyond an expansion of the open skies agreement that was signed with the United States about a decade ago.

He also suggested that the committee should consider allowing foreign, non-American airlines more options in providing services within Canada.

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..."I want to make sure my parents can fly from Athens to Toronto," he said. "We need to serve our ethnic communities."

...

When IATA complains, when Air Canada complains, when WestJet complains, nothing is said from Ottawa and the mandarins.

But. man o' Man, if his parents can't get to Athens???????

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Guest rattler

I wonder when someone will complain on behalf of the large Asian Population in Calgary who can not fly direct to their homelands????? ph34r.gif

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Guest rattler

biggrin.gif

But seriously, Calgary has a total population of just under 1 million of which more than 100,000 are from countries within the Pacific Rim. The city's South East Asia community consists of members with cultural roots from countries such as China, Vietnam, Japan, Korea, Cambodia, Thailand and the Philippines.

Although these South East Asian countries are close geographically, each is unique and rich in history, religion and culture. Calgary's two largest Southeast Asian communities are the Chinese with a population well over 50,000 members, and the Vietnamese with a population of more than 25,000 members.

Just another reason why Calgary is a great city to live in.

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... Calgary has a total population of just under 1 million of which more than 100,000 are from countries within the Pacific Rim. ....

Edmonton is a city of the same size (~1 million) and has no International air service at all. The population is probably more culturely diverse than Calgary.

You might find that size doen't matter.

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The airlines say landing fee increases of 29 per cent last year and 27.7 per cent this year aren't justifiable.

The GTAA says the airlines have always known they would have to pay significantly higher fees to help finance the new $3.6-billion terminal, part of a $4.4-billion capital program at the airport. The airport authority has also argued that the airlines -- and their customers -- are getting better services for what they pay.

Some debate.

Absolutly amazing increases. vs. Incredibly expensive new terminal.

Seats go on sale this week. Or should I say "Seat sales starting soon!" ? dry.gif

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Guest rattler
Edmonton is a city of the same size (~1 million) and has no International air service at all. The population is probably more culturely diverse than Calgary.

You might find that size doen't matter.

What's an "Edmonton"????? biggrin.gif

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Remember, we have to abide by posting guidelines, Rattler...  biggrin.gif

cairspace

Oh God....

Please,,,

Let's not degrade this board into a level of Political Correctness that is nauseating.

As much as we abhor it, creativity comes from conflict. What we need the most help with is the Resolution part of the equation.......

Don't sanitise my AEF!!!!!

Iceman

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The airlines have kicked off a new effort to address their concerns by lobbying specific federal politicians, particularly Liberal MPs and cabinet ministers from Toronto. The foreign airlines, like their domestic counterparts, hope that if they can convince Ottawa to lower or eliminate the rent that it charges airports, then the airports will pass that savings on to the airlines

The problem is that once those rents are lowered the GTAA has no reason to pass on the savings--they know that at the current levels people will still pay! SO they provide some lip service and lower the fees. The ways these morons operate they will simply add new projects, hire more managers and up the fees in the near future. Because they can.

I don;t know if the government run airport was better or not but the curent system doesn't work. Somehow they (the airport authorities) have to be held accountable and until they are there won't be any relief.

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