Reduce taxes, fees to help grow Canada’s airline industry, lower prices: study
MONTREAL — A new study suggests federal and provincial governments can help ease some of the frustrations of travellers and grow the country’s air transport sector by reducing taxes and fees imposed on the industry.
Alexandre Moreau of the right-leaning Montreal Economic Institute says Canada’s massive geography and low population density help keep airline prices high, but even a small reduction in taxes and fees could make a big difference for travellers.
In his study, Moreau writes that comparatively high airport rents and security charges, coupled with provincial taxes, are restricting the potential for growth in the country’s air transport sector.
Canada is ranked 31st out of 32 countries in the Organisation for Economic Co-operation and Development (OECD) for the competitiveness of airport fees and taxes.