Centerlines - September 2008 - (Page 15)

CANADIAN AIRPORT S Aviation Industry Crisis: Opportunity for Canadian Aviation Policy Reform W I T H W O R L D O I L prices at record high levels and air carriers of the world cutting service, the airline industry clearly is in “crisis mode.” But for Canada’s airports, there is room for hope during this latest crisis, if the federal government takes it as an opportunity to re-examine its fiscal approach to aviation. While some parts of Canada’s economy have boomed from the high price of oil, high fuel costs have negatively impacted Canadian carriers and Canada has seen one round of capacity cuts from its largest carrier. Air Canada in June announced a 7 percent reduction in overall capacity. The move will see the elimination of nearly 2,300 jobs from Air Canada and regional partner Jazz. Canada’s second largest carrier, WestJet, says it plans to continue to grow for the time being, while it remains to be seen just how much of an impact on Canada will come from capacity cuts at U.S. and international carriers. At the same time that Canada’s air carriers began contending with the fuel cost crisis, the competitiveness of Canada’s tourism sector already was under examination. According to a recent report from the Tourism Industry Association of Canada, Canada’s travel deficit ballooned to $10.3 billion in 2007. centerlines Airports Council International – North America 1775 K Street NW Suite 500 Washington, DC 20006 (202) 293-8500 ® ACI-NA Staff Greg Principato President Deborah McElroy Executive Vice President, Policy and External Affairs Eileen Denne Senior Vice President, Communications and Marketing Thomas Smith Director of Communications Published by Naylor, LLC 5950 NW 1st Place Gainesville, FL 32607 (800) 369-6220 Publisher John Kilchenstein Editor Michael Senecal Project Manager Ray Goodwin Marketing Associate Patti Callahan Bookleader Shane Holt Sales Reps Lou Brandow, Krys D’Antonio, Shaun Greyling, Josh Rothburd, Mark Tumarkin, Chris Vermeulen, Chris Zabel, Jason Zawada Designer Robert Mensies Advertising Art Carrie Smith Cover photo © D.C. Hughes/Lemur News Images Centerlines is published quarterly by Naylor, LLC, on behalf of the Airports Council International–North America. The opinions expressed in this publication are not necessarily those of the publisher nor of ACI-NA. © 2008 Airports Council International– North America, which is the exclusive owner of all rights and interest in the published work, unless otherwise agreed to in writing. ACI-NA and its members may reproduce the magazine, and the published work, in whole or in part in any media without prior authorization from Naylor. ® Centerlines is a registered trademark of ACI-NA. Published September 2008/ACI-Q0308/7445 SO if there is room for hope in this latest crisis to afflict our aviation sector, it is that perhaps it can serve as a catalyst for Canada’s federal government to re-examine its approach to aviation taxation. As the CAC has outlined for years, Canada’s airports pay about $300 million a year in airport rent, which gets passed on to the consumer along with a security tax, fuel excise tax and other costs. High fuel costs represent yet another cost that gets passed on. This does not make for a competitive tourism sector, and tourism is a $70 billion industry for Canada. As the CAC testified in June before a government panel examining tourism competitiveness, “In order for Canada to be competitive in the tourism business, each link in the value chain must be competitive, efficiently operated and customer focused.” This includes the components of aviation. So if there is room for hope in this latest crisis to afflict our aviation sector, it is that perhaps it can serve as a catalyst for Canada’s federal government to re-examine its approach to aviation taxation. Canada needs an approach that encourages more tourists, not ones that result in a less competitive business. ■ J I M FA C E T T E P R E S I DE N T A N D C E O C A N A DI A N A I R P OR T S C O U N C I L E-mail address changes to or mail to 1775 K Street, Suite 500 Washington, DC 20006 | CENTERLINES 15

Table of Contents for the Digital Edition of Centerlines - September 2008

Centerlines - September 2008
Welcome to Boston
President’s Message
Canadian Airports
Associates’ Corner
Policy Center
On the Hill and On the Stump
Downes Award
ACI-NA 60th Anniversary
Host Airport Profile
Cover Story: James L. Oberstar
Regulatory Front: Security Standards
Security: Checkpoint Evolution
Environment: Measuring Greenhouse Gases at Sea-Tac
Air Service: Wild, Wild Ride
Passenger Focus: DOT’s Complaint Desk
On Management: “TLC” at John Wayne
Revenue Arena: A Tale of Two Diversified Cities
Media Relations: New Media
Now Underway
Grand Openings
New Members
Conference Sponsors
Conference Exhibitors
Index of Advertisers/
Box Scores

Centerlines - September 2008