Quick Action Needed to Improve Canadian Airline Industry

TRANSPORTATION/PUBLIC WORKS/TOURISM/CULTURE--Quick Action Needed to Improve Canadian Airline Industry

The federal government should move quickly to reduce the cost of flying in Canada, according to Transportation and Public Works Minister Michael Baker and Tourism and Culture Minister Rodney MacDonald.

"The air industry is going through a difficult time and needs action on the part of the federal government," said Mr. Baker. "Good air service and viable airports support the province both socially and economically."

"Tourism depends on visitors having the ability to access affordable air transportation," said Mr. MacDonald. "The federal government can provide help through airport rent relief and further reducing or eliminating fees such as the air traveller security charge. Such actions would help increase air traffic, which is crucial to economic prosperity."

Nova Scotia has also urged the federal government to revive its international air policy review and aggressively pursue open skies opportunities with other nations. The number of passengers coming into Nova Scotia from international flights has decreased by about 40 per cent from 2001 totals.

Domestic air flights into Nova Scotia are remaining fairly stable as are flights from the United States. Smaller airports like Sydney and Yarmouth are struggling due to reductions in passenger service.

"Keeping these fees and charges in place does not present an environment that promotes growth in the airline industry," said Mr. Baker.