Canadians flying out of U.S. airports to avoid taxes

[teacher]

We're not just fighting our own race to the bottom

Canadians flying out of U.S. airports to avoid taxes

CTV Toronto: Pat Foran crunches the numbers

As many as 5 million Canadians could cross the border this year to use an American airport. The Hotel Association of Canada says it's not just hurting airlines, it's taking money away from hotels, restaurants and tourist attractions.


Integrated Deicing Services employees de-ice a plane during a winter storm at Buffalo Niagara International Airport in Cheektowaga, N.Y., Tuesday, Feb. 1, 2011. (AP / David Duprey)

Date: Wed. Feb. 16 2011 4:50 PM ET

MONTREAL — More than one in five Canadian leisure travellers ducked higher domestic airfare taxes and fees last year by driving to the United States to fly to U.S. or international destinations, says a new Hotel Association of Canada survey.

The number of Canadians who hopped the border increased by three percentage points from 18 per cent in 2009, according to the association's 2011 Canadian travel intentions survey released Wednesday.

An additional 11 per cent of Canadians surveyed said they would also consider making the trek in 2011, in part because of the strong loonie.

The potential for almost one third of Canadian travellers to avoid their local airport will cost Canadian airports, hotels and airlines billions of dollars in lost business, says association president Tony Pollard.

The growing travel trend highlights the need for the federal government to reduce airport fees, travel costs and airline surcharges, he said.

The travel industry has long pleaded without much success for the government to reduce taxes and fees.

The savings from driving an hour or so to fly out of a U.S. airport can be substantial.

Montrealers departing in two weeks for a week-long trip to Orlando, Fla., for example, would pay twice as much to fly from Pierre Trudeau International Airport than from Burlington, Vt.

A midweek roundtrip Air Canada flight costs $629, including $137 in fees, taxes and surcharges. Star Alliance partner United Airways offers the trip for $308, including $42.80 in taxes and fees.

Pollard said the growing use of the Internet is making it easier for travellers to shop and compare fares.

Seventy-three per cent of leisure and 86 per cent of business travellers use the Web to gather information before they book travel.

Nearly 40 per cent of travellers used their cellphones to check the weather, 27 per cent to check flight times, 19 per cent to book hotels and 11 per cent to book air, train, or bus tickets.

The survey also found that 83 per cent of Canadians plan to take a leisure trip in 2011, up from 78 per cent last year.

Business travel is expected to remain unchanged at 76 per cent from 2010. But business travel in Ontario will be up five per cent, the survey found.

The online survey was conducted in January 2011 among 1,627 "likely travellers" and had a margin of error of plus or minus 2.4 per cent.

http://www.ctv.ca/CTVNews/TopStories/20 ... es-110216/

[bigskyjoc]

And everytime an airline goes bankrupt or a tour operator strands thousands those same spineless politicians all raise their arms as though it was the airline or tour operators fault.

That post will be copied and pasted and sent to the appropriate MP's. I encourage you to do the same.

What a bunch of idiots we have running this country.

[rigpiggy]

lets see yhz-mco ie going to disney world, before hotel, food and extras

4700$ difference, I'd drive to bangor to save that much


Total charge for 2 adults, 1 youth, 3 children
Departing Flight (Tango Plus)
3870.00
Returning Flight (Tango Plus)
3114.00
Options 0.00
Taxes, fees, charges and surcharges 1325.10
Grand Total - Canadian dollars $8309.10 CAD


(All prices are in US dollars.)

3 Adults: $1,650.00 ( $550.00 per person )
3 Children: $1,650.00 ( $550.00 per person )
Taxes & Fees: $270.00

--------------------------------------------------------------------------------

Ticket total: $3,570.00
Travel Protection-6 plans $119.70 ( $19.95 per person )

--------------------------------------------------------------------------------

Total payment due: $3,689.70

[crazy_aviator]

Speaking about a bunch of idiots running the country ,, just heard a report that says it costs 60,000 per person to house an inmate for 1 year in a provincial institution (jail) and 100,000/yr for a fed institution,,,the prov rehab is nearly non-existant and the fed rehab situation is poor what a JOKE our so-called learned folks have got us into !!!!!

[teacher]

What I don't get is why it costs so little in the states? How do these outfits turn a profit? Salaries are only a small part of the equation.

[J31]

It is not all about Canadian taxes and fees to fly into the US....have you seen the US trans border taxes!

[LegoMan]

Obama admin just announced the possibility of adding a $5.50 fee to passengers travelling to the U.S. by air/sea. Even more incentive to drive across the border and fly out of a U.S. airport.

[208Drvr]

With the ridiculous security checks at airports there is even more of a reason to drive across the border.

[photofly]

I flew out of Buffalo to New York instead of out of Toronto, and did indeed save a few hundred dollars. However I'm not the holder of a US or Canadian passport and I neglected to allow an extra two hours to make it through the almost comically lackadaisical immigration procedure at the border crossing and therefore missed my flight.

[bmc]

I was at a conference in Washington this week and two senior guys from Jetblue were presenting. They showed their planned growth into the Caribbean and Central America. Nothing on Canada.

So when the floor was opened to questions, I asked why Canada wasn't in their plans. They said they adequately access the Canadian market through Burlington and Buffalo. Furthermore, in terms of actually flying to Canada, they say the taxes imposed on passengers is so prohibitive, it would undermine their value proposition of offering true low cost service to Canadians.

[bmc]

What I don't get is why it costs so little in the states? How do these outfits turn a profit? Salaries are only a small part of the equation.

Come to Europe, where airfairs are "reasonable". Last year, my daughter flew Oslo-Dublin for CAD 50 return tax in, on Ryanair. A month later, she flew Oslo-Birmingham for CAD50 Tax in on Ryanair.

[Gorgons]

Salaries a small part of the equation? I think you will find that the big three when it comes to airline costs are as follows;

1) Fuel
2) Aircraft Maintenance
3) Employee Wages

Its a race to the bottom alright, a never ending theme that seemingly touches every other thread is how poorly the industry pays pilots. But in a heartbeat we drive accross the border to fly with a carrier that will get us to a destination for less. Once again we need to look in the mirror when we talk about problems with the industry.

[teacher]

OK but somewhere on here I once read something along the lines of crew salaries only being a small percentage of the hourly cost. One thing I neglected to take into account though is everyone elses wages sych as ground handling, catering, grooming, agents, office staff, AME..................etc

[RatherBeFlying]

I think you will find that the big three when it comes to airline costs are as follows;
1) Fuel
2) Aircraft Maintenance
3) Employee Wages

Not quite so. You have left out airport fees. On top of the cost of building and staffing these fine facilities the airports also have to pay a very handsome rent to the feds.

CATSA also has their hand out -- along with US Customs and Immigration.

Coming back home, Canada Customs and Immigration collect their processing fee.

Then there's NavCanada fees and federal ticket taxes.

[Gorgons]

I agree those costs also factor into the costs that need to be recovered, although in some cases they are collected and reflected as a line item right on the ticket as opposed to being buried into the hourly or mileage calculation. I'm not disputing or leaving those costs out, I'm simply saying that they are not at the top of the list.

[xsbank]

KFLL to CYUL. It took me 1.5 hours to get through customs. The new customs hall was completely full, the line went up the stairs and along the corridor out of sight. Only about a third of the kiosks actually had a moron in it and we all shuffled back and forth in this stupid line-up cussing and bitching. Welcome to Canada. Not only do they screw us with fees and taxes on our tickets, there are other agencies standing there with their hands out, hoping you got a bit greedy and brought in too much gin... Doesn't matter how high the fees, they want more and they still treat you like something stuck on their shoe.

Canada is a stupid country in many ways, run by greedy arrogant wankers that treat the citizens like criminals.

The country is like a visit to Canadian Tire. Must be ingrained in our culture.

Makes me mad enough to spit. European countries have customs and immigration but they are polite and they don't line you up endlessly - in Heathrow, they have 2 doors, Nothing to Declare and Something to Declare - you just walk through the 'Nothing' line and you are gone. Sure they watch you, but they take the position that you are NOT a criminal first.

Canadian airports are evil places run by people with no foreheads, all with their hands out to feel and then steal your balls. We got incensed when Egyptians shook down Canadians leaving Cairo in the crisis, but it happens all the time here, just better organized.

The country is over-run with Tamil Tigers, Sikh terrorists, Chinese gangsters with big smiles, Vietnamese, Jamaican, Haitian and Italian drug gangs, mafia construction companies, probably even Taliban yet all our government really cares about is if somebody brought too much gin back from Disneyland. Dr. Seuss couldn't have made this up.

[bmc]

The country is over-run with Tamil Tigers, Sikh terrorists, Chinese gangsters with big smiles, Vietnamese, Jamaican, Haitian and Italian drug gangs, mafia construction companies, probably even Taliban yet all our government really cares about is if somebody brought too much gin back from Disneyland. Dr. Seuss couldn't have made this up.

Hey...I'm not recist. I hate everybody equally.

I went through YUL a week ago Thursday. Couldn't agree more.

[Localizer]

I think the question should be ... How much more of this shit are we going to take? Maybe we should all take a look at the province of BC when the government was imposing the HST and the revolt that ensued. What would this country look like if Canadian's actually stood up and gave a damn for once. Look at the CRTC's ruling on internet charges ... the people that stood up and said "Enough!", managed to gain the ear's of the politician's and a soon to be reversal from the CRTC.

We have the power to stop the insanity, we just choose to sit back and take it while complaining in small circles of friends. Everyone needs to start using there computer's and telephone's and tell your elected official that you've had enough.

[Navajo Flyer]

Just booked flights to MCO from YYC on the blue team. Flight for two was $720 return, plus approx. $300 in fees and taxes.

[Navajo Flyer]

All the air navigation system, controllers, airports etc. was covered by the feds through our income tax. The liberals brought in a user pay system - if you use it, you pay for it (airport fees, security etc.). Has our income taxes dropped? The feds cut their liabilities by getting rid of the aiports and everything else.