Pearson airport fees criticized by Air Canada president
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MONTREAL (CP) - Toronto's Pearson International Airport was singled out as "the world's most expensive airport" at an international conference on the future of global air transport.
Air Canada (TSX:ACE.B) President Montie Brewer said in an interview that operating out of Pearson affects the airline's cost structure and the fares consumers in the Toronto area have to pay.
"And I truly believe it stunts the potential growth of the economy in Toronto and Ontario," Brewer said Thursday.
Jim May, President and CEO of the Air Transport Association of America, zeroed in on the Toronto airport during a speech to airline decision-makers from around the world.
May pointed out that Pearson charges more than double the rate charged at New York's La Guardia airport.
"A big part of that is the Crown rents environment that adds tens of millions of dollars to the cost structure of the airport without any discernible aviation benefit," he added.
Brewer also echoed the complaint about the high rents paid by the airport.
"It's a fairly significant part of the cost structure that needs to be addressed. . This is an issue all across Canada, but it's more pronounced at Pearson," he added.
May cited the Toronto airport as one of the many obstacles the troubled airline industry in the United States has had to deal with lately.
The airline executive said since the terrorists attacks on Sept. 11, 2001, overall airport fees, taxes and surcharges in the U.S. have risen to 30 per cent of a typical airline ticket.
In his speech, May also complained about air traffic control systems in the United States, saying even Mongolia is moving to a satellite-based modern system.
"The reality is our radar-based human-intensive analogue navigation forces us to operate in the 21st century using World War Two era technology," May said.
May said the U.S system was "old, antiquated and needs to be retired to the Smithsonian Museum in Washington as a relic of the past."
He noted that in 2005 air traffic control delays cost U.S. carriers an estimated $6 billion dollars US.
The head of Air Canada agreed, saying anything that slows down an efficient operation impacts the customer.
"Right now, there are a number of airports along the eastern seaboard where afternoon thunderstorms do show up and do slow down the routes you can use to access those airports" Brewer said.
"(It's) to the point where we are gonna start notifying customers who fly to La Guardia that if it's bad weather they should allow extra time in their plans because it is harder and harder for airlines to deliver on time when the infrastructure can't support the volume."
The air transport outlook conference was hosted by the International Civil Aviation Organization and the Airports Council International.
Shares in ACE Aviation, parent company of Air Canada, closed at $31.17, down three cents, on Thursday on the Toronto Stock Exchange.
