Canadian Govt.'s New Ticket Tax Will Hit Regionals Hardest

Airlines Say Flat Security Fee Unfair For Short-Haul Operations

Regional airlines in Canada are criticizing a new security ticket surcharge announced by the Canadian government, saying that the flat fee is particularly burdensome to short-haul regional operations and will drive away passengers.

Since the new ticket tax was unveiled Dec. 11, it has provoked a significant groundswell of opposition from airline and community groups across Canada. The tax was included in the Canadian government's annual budget document, and will be used to fund a wide range of security initiatives that are controversial in themselves. The tax will be CAN$12 per trip, or CAN$24 per roundtrip, irrespective of the size of the carrier or length of route.

Regional airlines say that this new fee - which adds to an already lengthy list of ticket surcharges - represents a sharper price increase for a short-haul flight than for a more expensive long-haul flight.

The busy short-haul routes between Vancouver and Victoria, B.C., are a good example. The CAN$12 fee will be added to a ticket that can be bought for less than CAN$60, according to Pacific Coastal Airlines CEO Daryl Smith. Smith said it is "laughable" that a 300-mile trip is charged the same as a 30-mile trip.

He said that when the security fee is added to existing surcharges, such as air-traffic control (ATC) and airport fees, the surcharges will actually comprise more than half the value of short-haul tickets.