Canada’s airports likely to hike passenger fees

Canada’s airports are facing the bill for long-recommended upgrades just as COVID-19 has decimated their revenues, and passengers could end up covering the costs when planes take off again.

In early March, before the pandemic was front and centre, the government published new regulations calling for the extension of emergency overshoot areas at major airport runways. The overshoots, called runway end safety areas (RESA), exist at airports around the world and are designed for emergencies when planes run out of room while landing.

Canada’s standards on this issue have been lower than the rest of the world for years, with the current rules requiring only 60 metres of overshoot area and another 90 metres as a recommendation.

The need for more space in an emergency was made dramatically clear in August 2005, when an Air France jet landed at Toronto’s Pearson airport and slid more than 250 metres past the end of the runway, before crashing into a ravine and catching fire.

In what was widely viewed as nothing short of a miracle, all of the 309 passengers and crew on board survived, but there were many serious injuries.

Daniel-robert Gooch, president of the Canadian Airports Council, said they see the need for the increased stopping areas, but the changes are coming at the worst possible time for airports.

“We’re not opposing the regulatory requirements. We’re just wondering how we’re going to be able to pay for it,” he said.

Some Canadian airports meet the higher standard already, but Gooch said when they did a survey of Canadian airports, the total cost was pegged at roughly $360 million, much of it at smaller facilities.

He said the upgrades are a major cost, but airports are dealing with bigger problems as passenger volumes and revenues have fallen off a cliff during the pandemic.

“It’s a very bad situation. Airports are basically borrowing to get through the crisis. They’re going through their cash reserves.”

Most of Canada’s airports operate as not-for-profits and Gooch said they don’t have any extra revenues, so they will have to consider increasing airport improvement fees and other charges passengers pay.

“If we don’t get any support from government, airports are gonna have to raise the rates, just to cover the additional debt and the interest payments.”

The Ottawa airport has already made a move proposing to increase its airport improvement fee from $23 to $28 effective Oct. 1.

Winnipeg airport is also hiking its fee to $38 on Sept. 1, up from $25. The fees are charged to every passenger arriving at the airport.

Even with the added fee, Winnipeg expects to see a nearly $30 million loss this year.

Gooch said he expects other airports will have to follow if there isn’t some manner of federal support. The government has waived the rent it charges to airport operators, but Gooch said that is based on revenue, which has virtually disappeared this year as most flights have been grounded due to the pandemic.