Time to salute the heros of the Ottawa Airport Authority

[Kelowna Pilot]

http://www.reportonbusiness.com/servlet ... iness/home

[linecrew]

I take back 5% of all the bad things I've ever said about them.

[Kelowna Pilot]

What's interesting is that the cuts kinda foreshadow the upcoming AC contract negotiations.

[Airbrake]

Looks like Toronto is not going to follow the same rules, too bad.

http://www.financialpost.com/story.html?id=597279

GTAA cuts fees for cargo but not passenger planes

Scott Deveau, Financial Post Published: Thursday, June 19, 2008

Story tools presented by

Canadian airlines may be reeling from soaring fuel prices, but they shouldn't expect relief from Toronto's Pearson Inter-national Airport anytime soon.

While the GTAA, which operates Pearson, will announce a 25% reduction in its cargo landing fees today, there are no such plans for passenger aircraft, according to Lloyd Mc-Coomb, GTAA chief executive.

Air Canada, Pearson's largest customer, said this week it would be substantially scaling back its capacity starting this fall due to the price of fuel.

While those cuts, combined with others announced at U. S. airlines, will almost certainly affect the GTAA's bottom line, Mr. McCoomb said the airport's current cost structure doesn't afford the GTAA the flexibility to cut passengers landing fees at this time.

"We're going to share in that pain equally," he said. "We are currently reviewing every process at this airport in order to pass those savings on to passengers."

The GTAA did determine it would be "prudent" to slash cargo rates as of Jan. 1, 2009, to make the airport more competitive for air freight.

It costs about $34 a ton to land at Pearson for both passenger and cargo planes, which will be reduced to about $25.50 a ton for cargo planes next year. By way of comparison, nearby Hamilton International Airport costs about $10.61 a ton for both passenger and cargo planes. "A lot of the air cargo business that would otherwise be leaving here by air is being trucked to destinations, even as far away as Chicago," Mr. McCoomb said. "We are losing a serious amount of business."

Air Canada Cargo will no longer be flying its last dedicated cargo plane to the airport as of June 30. Another unidentified carrier also substantially scaled back its operations there this year, but asked not to be named.

The International Air Transport Association has clashed with the GTAA for years over its passenger landing fees, which are deemed the highest in the world, arguing it would make the airport and the airlines more competitive if they were reduced.

"In terms of losing business, what a joke," Mr. McCoomb said. "We've been growing at 6% [a year]."

[RNAV]

Funny how they cut them now in a 'time of crisis'.

Their fee went to $15 shortly after 9/11 because they predicted fewer travellers and had to make up the shortfall. Hmm...

[bmc]

Whatever their motivation, it's a welcomed action.

[FamilyGuy]

Uh how is that good news?

All that says to me is that when times were "good" they were charging more than they needed to.

I understand maybe now they are putting off buying another waterfall or some artwork but it's still gouging travellers when they can afford it and cutting back when the airlines profits can't.....

[water wings]

Funny how they cut them now in a 'time of crisis'.

Their fee went to $15 shortly after 9/11 because they predicted fewer travellers and had to make up the shortfall. Hmm...

kinda reminds me of income tax - wasn't that "temporary measures" in a time of need?
i'm not that old, BTW.
i'm just saying.

As for the 5% cuts, well, airport authorities have been gouging private and commercial operators alike across this fair land for years. I can only imagine the "Scrooge McDuck" pit of money.

[scrambled_legs]

I don't know about gouging, if it was so viable to own a no frills terminal at a no frills field, ALL of WJ as well as many other carrier's operations would be based out of Abbotsford. Many people prefer the huge airport fees in order to avoid driving further and waiting in an enjoyable atmosphere for yet another unexpected delay, while sipping something better then horse piss with cream and sugar from the grease monkeys pot. YYZ may be an exception, floating off the deep end, but I don't mind the extra pocket change to be able to sit in a clean enjoyable atmosphere like YOW. Besides, terminals are the first impressions for travelers. I know I used to be embarrassed flying into our capital, getting off the plane and walking into a simulated 1980's bus shelter. The new terminal does our country some justice.

[shitdisturber]

Funny how they cut them now in a 'time of crisis'.

Their fee went to $15 shortly after 9/11 because they predicted fewer travellers and had to make up the shortfall. Hmm...

kinda reminds me of income tax - wasn't that "temporary measures" in a time of need?
i'm not that old, BTW.
i'm just saying.

You're quite right, income taxes were a temporary measure to pay for the expense of WW1. I wonder if anybody has noticed that the war ended ninety years ago this November.