![]() ![]() Some of the ATSC, which goes into the federal government’s consolidated revenue fund, is directed towards the costs of the Canadian Air Transport Security Authority, which administers the security screening systems at airports. The ATSC is meant to recover the costs of the air security program that was introduced in 2002 as a response to the 11 September 2001 terrorist attacks in the United States. Since April 2002, the federal government has collected the Air Travellers Security Charge (ATSC) from airfares for flights that use Canadian airports where enhanced security measures are in place. Source: Figure prepared by the author using data obtained from Statistics Canada, “ Table 23-10-0036-01: Domestic and international average air fares, by fare type group, quarterly.” 2.2 Air Travellers Security Charge Statistics Canada collects the data from the air carriers as part of the mandatory Fare Basis Survey, which uses “ stratified random sample of 56 days per calendar year of flight coupons lifted by the participating Canadian air carriers.” For more information on the survey, see Statistics Canada, Fare Basis Survey (FBS) All fare classes (business, economy, discounted and “other”) are also included. Note: The figure uses data for Air Canada and its affiliate airlines (i.e., Air Canada Rouge, Jazz and regional code-share partners), WestJet and Air Transat. ![]() While average annual base airfares declined overall during this period, they did increase slightly in 2017 compared to the year before for both domestic and international flights. During this period, the average base airfare declined from $189.43 to $167.93 for domestic flights (a 11% decrease) and from $342.15 to $299.05 for international flights (a 13% decrease). 2.1 Average Annual Base Airfaresįigure 1 shows the average annual base airfare (i.e., before taxes and surcharges) for domestic and international flights in Canada from 2007 to 2017. 5 The following subsections examine some of these fees and charges. 2 Components of Airfares in Canadaįees and charges in the Canadian air transportation system are often said to be among the reasons for the absence, until recently, of ULCCs in Canada. The third section offers insights from academic literature on the potential impact of ULCCs on airfares in Canada. The second section provides more details on three airline business models: the models for full-service carriers, ULCCs and LCCs. The first section focuses on airfares and the various surcharges that are included in those fares. This Background Paper provides information on both airfares and ULCCs in Canada. Nevertheless, it is hoped that the arrival of ultra–low-cost carriers (ULCCs) – airlines that offer even lower base fares and fewer frills than regular low-cost carriers (LCCs) – will put downward pressure on overall airfares in Canada.īill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts, 3 which received Royal Assent in May 2018, eased foreign ownership restrictions for airlines in Canada in an effort to help ULCCs access a larger pool of investment capital. 1 The various fees and taxes on air transportation in Canada are often cited as a key factor in explaining high airfares. Airfares are a perennial topic in Canada, with complaints that Canadians tend to pay much more for a plane ticket than people in other countries. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |