A restructuring of the air travel fee system is needed to keep air travel affordable, WestJet CEO Alex von Hoensbroech told the Calgary Chamber of Commerce, according to the Calgary Herald.
Von Hoensbroech says that $140 of a round-trip ticket between YYZ and YYC goes to airport fees, security costs, and regulatory bodies. In a statement on his first anniversary with the company earlier this year, the CEO said the government should be subsidizing air travel, not penalizing what is essential connectivity for much of Canada.
What’s more, in the new federal budget, security charges will rise 30 per cent, adding to pricing pressures. Von Hoensbroech joined other industry experts in pointing out that Canadians pay higher fares than air travellers in other countries. Experts add that extra government fees are keeping more ultra-low-cost carriers (ULCCs) from entering the Canadian market like they have in other places like the U.S. and Europe, which would offer more competition and downward pressure on pricing.
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