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Originally Posted by roger1818
….aviation is arguably more important for Canada than most countries (yes there may be exceptions). As a result, governments are very leery about making changes that might disrupt the airlines' business model. I am not saying that we shouldn't make changes, but you can see why governments aren't rushing in to increase fuel taxes on airlines.
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Unlike other countries, aviation is a moneymaker for Canadian governments. It's the only transport sector that pays its bills and then some.
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Since 1992, when Ottawa began transferring responsibility for operating large airports to local groups, Ottawa has become hooked on revenue from air terminals, according to the committee. From 1992 through 2009, the 14 leading Canadian airports paid a total of $3.3-billion in rent to Ottawa, plus those facilities have invested billions of dollars over the years in new buildings, runways and other infrastructure.
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https://www.theglobeandmail.com/report-o...enate-panel-urges-ottawa/article4232748/
Before the Conservatives were elected in Ontario, this was the provincial Liberals:
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In 2014 the Government of Ontario made the decision to phase in a 148 per cent increase to Ontario’s aviation fuel tax.
Now at 6.7 cents per litre, Ontario has the highest provincial aviation fuel tax in the country–more than double the aviation fuel tax in any other province, and it applies to all flights: domestic, international and transborder.
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https://www.skiesmag.com/press-releases/...uncil-lobbies-ontario-aviation-fuel-tax/
The Ford PCs cut the aviation fuel tax (paid on top of carbon taxes) by nearly 60% for Northern Ontario only. But this is not a minor issues given one of North America's largest hubs is in Toronto and 3 of the 10 busiest passenger airports, and two of the busiest cargo airports are in Ontario.
This is why the idea that aviation is subsidized is pure ignorance. It's some random American/European talking point applied in Canada without any context. And since there aren't really any subsidies to cut, there's not much that could impact prices. Liberalization may slightly lower prices if anything. But it won't substantially change the comparison to rail.
What's needed for rail is actual investment to create and operate services where economically viable. Hopefully, HFR proves this along the Corridor and they can then duplicate this in the Calgary-Edmonton corridor.