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Industry committee  I don't have those numbers in front of me. We can get them to the committee.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  We have given Transport Canada various options to phase it out, including even possibly turning the rent payments into something against the asset value over time, where it would be realized that we actually own the property. We looked at a passenger number. At the end of the day, if they were to say they would reduce the airport rent over the next three, four, or five years, all that would help in planning.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  Approximately, yes.

June 17th, 2008Committee meeting

Jim Facette

June 17th, 2008Committee meeting

Jim Facette

Industry committee  I acknowledge the challenge in having to be strategic in some of the recommendations, Mr. Chair, but I think when you add all the little pieces up together, it makes a big difference in the long term. And on the jet fuel side, it's only this one particular industry that uses it, and it's not just the large carriers, be it Air Transat, WestJet, Air Canada, or anybody else, that are going to benefit from that.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  The air service agreement Canada has with Japan is a traditional bilateral air service agreement. Traditional bilateral air service agreements dictate the number of seats and the destinations carriers can go between states. So the limitations put on any carrier, be it Air Canada or anybody else, are dictated by the air service agreement.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  Mr. Chair, if I might add, it is symbolic of an important message going forward. There are some things that business cannot control. The price of fuel now consumes about 33% of Air Canada's costs. I think it's more than labour. What's important is that in times like this, regulators like the federal government need to do whatever they can to give as much wiggle room as possible to enable the industries to compete.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  Simply, yes. As the CEO of Air Canada said today, if these kinds of fees can be reduced, then that paves the way to lower flight costs. It's as simple as that. Canadian airports have promised that if their rental costs are reduced, these savings will be passed on to airline companies.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  That's a good idea. Thank you.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  That is a difficult question. In fact, this is something we have been trying to achieve for several years now. However, it may be time for our Prime Minister to do something. But I don't know whether there is any particular way of reaching that goal. Two or three former governments have tried to deal with the issue, and so far, nothing has been achieved.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  The agreement in 1992, when the operation of the airports was transferred to local airport authorities, was that the federal government didn't have the money to upgrade the value of the asset, so that you would take it, you would upgrade it, and for the privilege of operating it and paying for the upgrades.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  There's an expression in the aviation industry that if you've been to one airport, you've been to one airport. Each airport is different and unique. A lot of the transportation links to the airport, be they public or private, are usually a function of the work that goes on between the airport and the municipality.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  Air Canada announced today that it is due to oil prices. However, according to the document in front of me, its representatives stated that they are forced to deal with federal and provincial fuel taxes and security and airport fees that are among the highest in the world. This means that there are other problems that are not only due to oil prices.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  That's an excellent question. Thank you very much for it. If we don't change the way we do business as a government in terms of policy on airports, we're going to lose potential. The reason Seattle has more international flights to either Asia or elsewhere is that the United States has 91 open skies agreements.

June 17th, 2008Committee meeting

Jim Facette

Industry committee  Thank you, Mr. Chairman, and good morning. Thank you for the opportunity to speak with you today as part of your study on the current state of the Canadian tourism industry. Mindful of time, I will be brief. The Canadian Airports Council is the voice of Canada's airports. Our members handle 95% of the passenger traffic and 100% of the cargo traffic.

June 17th, 2008Committee meeting

Jim Facette