Northern Air Transport Association Highways in the Sky Panel Presentation Opportunities North, September 8, 2016

Transcription

1 Northern Air Transport Association Highways in the Sky Panel Presentation Opportunities North, September 8, 2016

2 NATA 2016 Board of Directors President-Wayne McLeod Keewatin Secretary/Treasurer-Trevor Weaver Air Tindi Vice President-Wendy Taylor Alkan Aaron Speer First Air Joe Sparling Air North Sean Loutitt Cdn North Travis Wright North Wright Myles Cane Summit Air Jay Dilly Hawkair Brian Crocker Kenn Borek Claude Marchand Conair Trevor Bjorklund Marsh David MacPhail ATS Services Naomi Nind Gowlings Norm Matheis Universal Avionics Steve Williams Emond Harnden Carol Clark First Air Dave Minty Air Inuit

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4 Resolution Northern Air Carrier Economic Issues Be it resolved that: Transport Canada work with NATA to review the Emerson report on the Canadian Transportation System and CTA Review to develop policy that recognizes and supports the role of Northern Air Carriers in the northern economy and in Canada s air transportation network, and; Other Federal and Territorial Northern stakeholders, including Territorial Departments of Tourism and Economic Development, AANDC and CanNor also reference the Canadian Transportation Agency Report and develop travel and other policies that recognize and support the role of Northern Air Carriers in the northern economy.

5 Resolution Funding for Northern Airports Be it resolved: That the Federal Government create a Northern Airport Capital Assistance Program (NACAP) with a broader eligibility criteria and additional funding to the existing ACAP to ensure the updating and long term viability of this essential Northern infrastructure.

6 Pathways: Connecting Canada s Transportation System to the World A report tabled before Parliament on February 25, 2016 Government should establish a new fund dedicated to addressing the specific needs of northern and remote airports, namely extreme climate and the limited number of asphalt runways. Federation of Canadian Municipalities, Submission to the CTA Review, December 2014 GREENLAND For its size and remoteness, Greenland has relatively well-developed marine and aviation transportation infrastructure. It has no road network but of its 18 airstrips, 14 have paved runways. UNITED STATES With 61 paved airports, Alaska has more than six times as many paved runways as the three Canadian territories combined.

7 NAP- 25 Years later (cont d) Airports are public infrastructure that must be administrated with a view to the collective wellbeing of all Canadians. (Extract from the Report of the Standing Senate Committee on Transport and Communications: One Size Doesn t Fit All: The Future Growth and Competitiveness of Canadian Air Travel, April 2013, page 9.)

8 Airport Improvement Fees (departure tax) There is no doubt that AIFs achieve the objective of significantly increasing an airport s cash flow and, on the surface at least, appear to be a no-brainer for airport operators. Digging a little deeper however, there is at least the potential for unintended consequences. The following are some examples: 6% commission paid to airlines 2% administration fee paid to ATAC. GST PST and/or HST costs. Up to 12% paid in Federal Rent (at NAS airports). Airlines will only commit to remitting AIFs for 95% of passengers (effectively an additional 5% cost). Annual auditing costs and the occasional need to hire forensic auditor or legal services to get paid Bottomless pit of ever-increasing fees

9 Airport Improvement Fee an Embarrassment- Gibson- June 14, 2016 The $25 fee passengers must pay every time they have to fly out of the Prince George is an "embarrassment" but one everyone will have to live with for some time yet, Prince George Airport Authority CEO John Gibson told city council on Monday night. The federal government reaps $300 million a year in revenue out of Canada's airports and returns just $38 million in the form of capital improvements, Gibson said. To make matters worse, he said Prince George Airport does not qualify for that funding because it sits on federally-owned land. Take Prince George Airport out of the national airport system - We'd then take over ownership of our land and we would be in a position where we could access funding," Gibson said. "But we think that's a long-term solution, not a short-term solution." As it stands, Gibson called the situation "tremendously frustrating." The fee was increased by $5 at the start of the year.

10 Northern Aviation Transportation Infrastructure is a Federal Responsibility A percentage of the National AIF collectively should be used to fund Northern and Remote airports. Any airport rent paid to the federal government should end NCAP funding should be expanded to include airports recommended by the territory

11 NATA believes there is a better Pan territorial solution to aviation infrastructure support than just imposing different local and regional aviation taxes that increase the cost of living. COLIN DEMPSEY, General Manager PO Box Yellowknife, NT X1A 3X8 Phone: (867) admin@nata-yzf.ca GLENN PRIESTLEY, Executive Director Phone: (613) exec@nata-zf.ca

12 Thank you! We will be in Yellowknife for NATA 41 The Northern Aviation Business Conference April 24-26th, 2017.