Air Canada executive criticizes country’s taxation on flights
An Air Canada executive is urging voters to make federal government taxes on airline flights an election issue.
While giving a presentation this week at a Prince George Chamber of Commerce luncheon, Kevin Howlett, the airline’s senior vice- president for regional markets, showed a PowerPoint slide comparing the price of two airline tickets — one for a round-trip ticket from Vancouver to Phoenix, the other for the same destination but taking off from Seattle.
The cost of the flight starting in Vancouver was $580.28 Cdn, while the cost of the flight out of Seattle was $278.60 US, about $317.60 Cdn.
Howlett blamed the difference on a “prohibitive tax structure” north of the border.
He also said the revenue Ottawa collects is not reinvested in airports, while the U.S. subsidizes its airports.
“This taxation regime, frankly, is an artificial barrier to our ambition to grow and actually prevents and inhibits communities like Prince George to improve the level of service that they want into their communities,” Howlett said.
Howlett later said Air Canada has “certainly not been shy” in raising the issue with the federal government.
About eight months ago, in her capacity as transportation minister, Lisa Raitt appointed a commission headed by David Emerson, who was the chief executive officer at Vancouver International Airport for a time, to review the Transportation Act.
Howlett said the commission has been taking in submissions from stakeholders and the aim is to have a study ready in late December, “or to put it another way, after the election.”
Howlett made no promises about adding new destinations out of Prince George.
“I would never say never, but I would be equally dishonest with you if I said we’re going to start something tomorrow,” Howlett said.
If the airline was to make such a move, he said it would likely be through Air Canada Rouge, which caters to the leisure market.
The service is in the process of acquiring more planes, but they are large-capacity Boeing 787s, which carry about 250 passengers.
The airline provides daily direct flights between Prince George and Vancouver. Howlett did stress that with the service, Air Canada patrons are just “one stop away” from any major Canadian business centre and almost any major international business centre.
Rouge, meanwhile, provides flights from Vancouver to Los Angeles, San Francisco, Las Vegas, Phoenix, Palm Springs, Honolulu, Maui and Anchorage as well as a seasonal service to Osaka, Japan.