IATA has asked the Canadian Government to
improve the competitiveness of its aviation sector by prioritizing
the elimination of Crown Rents over consideration of airport
privatization.
"The Canadian government has already pocketed
about C$5 billion as the historical landlord of airport property.
That’s a C$5 billion disincentive to travel, to visit this
wonderful country or to plan a business trip. Eliminating Crown
Rents would boost Canada’s GDP by over C$300 million annually,
create more than 4,000 jobs and generate an additional C$111
million in tax receipts. This should be the priority," said
Alexandre de Juniac, IATA’s Director General and CEO.
The call to abandon Crown Rents was made in a
speech to the Montreal Council on Foreign Relations in which de
Juniac congratulated the Canadian government for not including
airport privatization in its 22 March budget announcement.
"We
hope that Transport Minister Marc Garneau’s motivation to defend
the interests of travelers will keep the privatization idea on the
back-burner permanently. Let me be completely unambiguous. Canada
will regret it if the crown jewels are sold," said de Juniac.
De Juniac elaborated on his concerns noting the
industry’s disappointment with privatizations to date. "We have
not seen a regulatory framework anywhere in the world that has
been able to successfully balance profit and public interest over
the long-term. But we have seen airport privatizations dent a
country’s competitiveness by increasing the costs of mobility and
compromising service levels," said de Juniac. "Airports should focus on enabling economic
vibrancy in the communities they serve. That means providing
sufficient capacity, with high service levels at affordable costs
so that airlines can develop connectivity. Community owned
airports—as is the case in Canada today—have every incentive to do
so. Private companies, however, have a different goal which is to
maximize profits for their shareholders."
Smarter Regulation
Aviation in Canada plays a key role in the
economy—linking Canada to global markets and underpinning some
600,000 Canadian jobs. The government’s open dialogue in the
Review of the Canada Transportation Act was a good example of the
consultation with industry that is so critical to building a
policy environment that supports growth and prosperity through
competitiveness.
Consultation is the first step in building
Smarter Regulation. IATA calls on governments to adopt Smarter
Regulation principles so that regulations create value by
efficiently solving real problems with minimal compliance costs.
"I hope that the Government’s openness to
dialogue will point it towards Smarter Regulation principles on
issues as diverse as passenger rights, tax levels, and
infrastructure development," said de Juniac.
In the same vein,
IATA also urged Canada to find ways to remove the patchwork of
provincial environmental measures impacting aviation to align with
global efforts such as the Carbon Offset and Reduction Scheme for
International Aviation (CORSIA) recently agreed by governments
through the leadership of the International Civil Aviation
Organization.
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