Elimination of fuel tax will boost airport
Charge hinders ability to compete for international flights, executive says
B. C.’ s elimination of the jet- fuel tax for international flights will end a competitive disadvantage and encourage new air services and flights to the province, a Vancouver Airport Authority executive said Thursday.
“This is important from a competitive perspective,” Tony Gugliotta, YVR’S senior vicepresident of marketing and business development, said of the measure, which was promised by the provincial government in 2010 and announced in Tuesday’s budget.
“For daily international flights, from Hong Kong to Vancouver, it’s about $ 1 million annually [ in taxes] for flying through Vancouver.”
Gugliotta said the measure, along with YVR’S five- year incentive program that freezes all foreign airlines’s fees at 2010 levels, has resulted in 22 agreeing to add 30- per- cent capacity through the airport over the five years.
He said the measure announced in the budget puts YVR and other B. C. airports on a more equal footing with airports in Washington state, Alaska, California and Alberta, which don’t charge the tax and are attracting international flights at YVR’S expense because of that.
He said airlines flying through YVR pay between $ 12 million and $ 16 million annually for the tax, a two- cent- per- litre surcharge that ends April 1.
YVR president and CEO Larry Berg also said each new daily international flight creates 150- 200 jobs at the airport, and the additional flights generated by the tax’s elimination will enable B. C. companies to gain access to more markets and customers.
According to the ministry of transportation and infrastructure, YVR, Canada’s second busiest airport, will benefit greatly through the tax elimination by not only giving B. C. businesses greater access to foreign markets such as China, India, Korea and Japan, but allow airlines to expand services with more confidence.
Transportation and Infrastructure Minister Blair Lekstrom added in a statement: “This initiative will have a significant impact not only on YVR and the Lower Mainland, but on airports and communities across the province.
“This move will strengthen YVR’S position in a very competitive market and build on its efforts to be the preferred gateway between North America and the growing Asian market. British Columbians will benefit from more flights and more competitive pricing to destinations worldwide.”
China Eastern Airlines, which offers non- stop daily flights between Vancouver and Shanghai, said in a news release the decision to eliminate the tax will help the airline in considering expanded services at YVR.