I am informed as follows:
Finance Canada
The air transportation industry is under pressure globally. The events of 9/11 exacerbated a weak air market caused by a slowdown in global growth. The war in Iraq and the SARS outbreak intensified these challenges.
In the budget presented to the House of Commons on February 18, 2003, the government reduced the air travellers security charge for air travel within Canada from $12 to $7 for one way travel and from $24 to $14 for round trip travel. This represents a reduction of more than 40 per cent that will benefit all domestic travellers in Canada.
To help the tourism industry, the government committed $20 million to promote Canada as a business and leisure travel destination. The federal government is also working with the tourism industry and provinces to promote Canada. The government continues to review carefully the policy underpinnings for a safe, reliable and viable air transportation industry for Canada.
I am informed by Transport Canadaas follows:
The government has taken, and continues to take, the necessary action to stabilize the industry in the long term interest of travellers and airlines alike. For example, after the events of September 11, 2001, the federal government created a fund to compensate carriers for revenues that were lost during the closure of Canada’s airspace. Later, a number of carriers received funds to reinforce cockpit doors to promote safety and security. Air carriers also continue to benefit from relief from insurance costs since the government is still providing coverage for war risk insurance.
Furthermore, in March 2003 the government introduced Bill C-27, the new Canada Airports Act, that will provide airlines with more input into fees charged by airports. The government is also undertaking a review of airport rents, since those rents directly affect the amount charged by airport operators to airlines using the airport.
The government is also assessing recommendations with respect to relief for the industry made recently by the Standing Committee on Transport.