Thank you.
Thank you for the opportunity to speak to the committee regarding the effects of COVID-19 on the aviation sector, and in particular for us today, to address the staggering impact on community and regional airports across our country.
My name is Brian Grant. I am chair of the Regional Community Airports of Canada, and I am joined by Mr. Todd Tripp. We are CEOs of regional airports located in northwestern Alberta and northeastern Ontario. Our organization represents a unique sector of the industry as airports that provide local and regional transportation infrastructure and services in support of rural and remote areas of our vast country, including emergency health services, cargo shipment, forest firefighting, passenger connections between communities and larger links for domestic and transborder international destinations.
Our membership is composed of airports that move 500,000 passengers or less annually. In essence, our airports support the necessary transportation for economic development and acceptable qualities of life for Canadians who deserve it, no matter where they live.
Many Canadians and various levels of government hear of air transportation and think of airlines that move people and goods. In reality, air service includes much more, with airports, cargo and baggage handling, refueling, air navigation and more playing essential roles and providing jobs in the local economies.
The COVID-19 pandemic has inflicted debilitating effects on passenger traffic and business sustainability in all sectors of aviation, particularly on the regional components of the system. Airports are subject to stringent regulations imposed by the federal government, which are necessary for the safe and effective movement of aircraft and passengers. We are faced with limited abilities to reduce our operating costs, while our sole sources of revenue continue to be stifled by COVID outbreaks and restrictions. The vast majority of regional and community airports are experiencing in excess of a 90% loss in passenger travel and over a 70% loss in revenues. Most of these airports are experiencing less than 25% of pre-COVID flights, and in some cases have lost their passenger service completely.
This pandemic has caused airports to drain financial reserves that may have existed, and it is now pushing airports to reduce availability of infrastructure, reduce levels of service and lay off essential staff to face the continuing pressures of COVID-19. A recent report compiled by RCAC in May 2020 identified 46 airports that suffered total loss of airline service by the end of April. Additionally, 11 airports experienced flight reductions in excess of 90% compared to January 2020. A further 79 airports saw reductions of their flights in excess of 80%. Many of those conditions remain today, and they will continue throughout the entire pandemic. Industry analysts indicate that recovery will take two to four years.
Nearly all assistance programs and announcements to date are not applicable to rural and regional airports, as these airports are ineligible to apply for help. Immediate priorities must include a review of the current eligibility requirements for the Canada emergency wage subsidy to include airports, regardless of their ownership or governance models; sustainable funding to replace lost revenues and ensure that local infrastructure remains open and rates and fees remain low to support the airline recovery; an immediate increase to the airports capital assistance program for small airports, to $95 million annually for the next five-year period; and a removal of the required contribution share for these airports for the next two years.
Airports' access to regional air service programs is essential to enable airports to reduce rates and fees and bolster air service. Our federal government, as regulator, holds sole jurisdiction over the aviation industry. It is critical that a holistic approach to the impacts of this pandemic be applied to ensure the survival of aviation in Canada.
In closing, airports are the foundation of our air service in the country. Without safe, secure and accessible airports, the efforts made to sustain other sectors of the aviation industry cannot be successful.
I thank you, and I'm able to take questions.