The federal government must step in and make massive changes to the aviation industry to keep Canadians flying out of this country's airports, a new report says.
High fuel taxes and onerous foreign ownership and airline-specific policies are harming the competitiveness of airlines, the C. D. Howe Institute report says.
This means Canadians are being forced to look south of the border for cheaper flights - including 4.8 million in 2011 - or are choosing not to travel at all.
The report, released Wednesday and called Full Throttle: Reforming Canada's Aviation Policy, says Canada was a global leader 20 years ago when it moved airports from government to private operation. The feds signed operating leases with not-for-profit airport authorities and the report's author Benjamin Dachis said now is the time for the federal government to sell the remaining interest either to those authorities or to for-profit corporations.
"Such sales could make investors, airlines, travellers, and taxpayers all better off," he said in a release.
The federal and provincial governments should reduce or eliminate remaining aviation fuel taxes and he said the federal politicians need to open up competition for foreign-owned airlines to be allowed to operate domestic routes.
"If Canadians are to have the most economically efficient aviation system possible - crucial for such a geographically huge country - the federal government should enact a comprehensive set of policy reforms across the aviation sector."
Messages left for Transportation Minister Lisa Raitt's communication staff for comment on the report were not immediately returned.
http://www.edmontonexaminer.com/2014/01/...g-to-be-more-affordable-in-canada-report