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-- Canada reaches aviation pact with European Union


Posted by dEsidEL on Dec-09-2008 16:29:

Read This! Canada reaches aviation pact with European Union


hmm cheaper trans-Atlantic flights to come? EasyJet/Ryanair running domestic flights within Canada?? say it ain't so!

quote:

Canada reaches aviation pact with European Union

December 09, 2008
THE ASSOCIATED PRESS

BRUSSELS, Belgium � The European Union and Canada have reached a landmark deal to open up their air services markets to each other.

EU Transport Commissioner Antonio Tajani says the pact will lead to more transatlantic trade and spur competition in the air services sector.

He says the deal, which removes restrictions on ownership and direct flights, makes "the EU-Canada market one of the most open in the world."

Expected to come into force in the first half of 2009, the deal will allow airlines based in the 27-member European Union bloc to operate direct flights to Canada from anywhere in Europe.

It removes restrictions on routes, prices and the number of flights allowed between the two sides.

It also foresees a phase-out of restrictions on investment and foreign ownership in airlines and could lead to European investors setting up airline operations in Canada.


source:
http://www.thestar.com/News/World/article/550737


Posted by Abercrombie on Dec-09-2008 16:29:

I hope this takes off


Posted by techead on Dec-09-2008 16:51:

about bloody time
sick of paying insane air canada prices or driving to buffalo


Posted by Thierry on Dec-09-2008 16:52:

Would be great if this actually leads to cheaper flights between the two.


Posted by snak3st on Dec-09-2008 17:14:

Awesome news, can finally go to Europe without having to pay so much!


Posted by Jayx1 on Dec-09-2008 17:18:

Next step is to decrease the taxes. We have some of the most expensive taxes and landing fees in the world.


Posted by FunkyCrew on Dec-09-2008 17:23:

shweet! at least if I'm flying home through Europe, the first portion of the trip will be cheaper..


Posted by infinity HiGH on Dec-09-2008 18:26:

I wanna see what the actual price difference will be. I was able to get to London over the summer for 700 bucks.


Posted by basilisk on Dec-09-2008 18:30:

Another step forward in the unrelenting march toward one world government. What next, the "Caneuro?"


Posted by infinity HiGH on Dec-09-2008 18:41:

quote:
Originally posted by basilisk
Another step forward in the unrelenting march toward one world government. What next, the "Caneuro?"


Conspiracy theorist!


Posted by slingshot on Dec-09-2008 18:51:

quote:
Originally posted by infinity HiGH
I wanna see what the actual price difference will be. I was able to get to London over the summer for 700 bucks.


no, a trip to see digweed at fabric for a few hundred bucks less is what's next!!


Posted by exstasie on Dec-09-2008 18:52:

quote:
Originally posted by Jayx1
Next step is to decrease the taxes. We have some of the most expensive taxes and landing fees in the world.


+1

They are places that advertise round trip flights to Europe for $250-$300.

The only problem is that it comes to over $600 with taxes.

Last time I flew to Europe my ticket was $630 or something which isn't that bad, but 50% of it was taxes.


I can find flights to the US for $20...but it comes to over $200 with taxes.


Edit: I just did a quick search and found around trip flight to Toronto -> Gatwick for $149. Not bad, but the damn taxes is the killer.

$448 for taxes and surchages.


Posted by TheVrk on Dec-09-2008 19:25:

quote:
Originally posted by Jayx1
Next step is to decrease the taxes. We have some of the most expensive taxes and landing fees in the world.

Doesnt Toronto have one of - if not the - highest in the world??


Posted by Jayx1 on Dec-09-2008 19:34:

quote:
Originally posted by TheVrk
Doesnt Toronto have one of - if not the - highest in the world??


it is the highest in the world.


Posted by rabbitjoker on Dec-09-2008 20:07:

quote:
Originally posted by Abercrombie
I hope this takes off


weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!

zing!


Posted by TheVrk on Dec-09-2008 20:11:

quote:
Originally posted by Jayx1
it is the highest in the world.

Ya i knew as of 2005 it was but wasnt sure if that changed since i left in summer '06


Posted by infinity HiGH on Dec-09-2008 20:11:

quote:
Originally posted by slingshot
no, a trip to see burridge at fabric for a few hundred bucks less is what's next!!


oh man...


Posted by dEsidEL on Dec-09-2008 20:26:


Landing fees make up some of the biggest overhead charges on your airline ticket alongside taxes (fuel, security, etc.) Here's a study that was taken in 2004 by the Air Transport Association of Canada on the landing fees that Pearson charges in comparison with other international airports around the world. According to their survey we were actually ranked #2 at the time next to Tokyo Narita which we may have quite possibly surpassed at this point, although a 2007 study showed a changing trend.

Here are the results of the 2004 study:

quote:

Airport Landing Fees

Costs to land

For the second consecutive year, Toronto's Pearson International Airport has ranked second in an annual survey of the highest landing fees at Global Airports.[2] As Canada's main aviation hub, Toronto Pearson the most important lynchpin in the Canadian transportation industry. And a key component of the entire economy. Government rents, taxes and other cost pressures represent a significant portion of the airport's landing fees. Unless and until the Government of Canada reverses its punitive rent policy, Toronto Pearson and its customers and passengers will never be able to compete on the world stage for more and better flight options.

With recent reforms to Tokyo Narita Airport's pricing methodology Toronto Pearson airport is at risk of becoming the most expensive airport in the world, a function of the rent payments due to the federal government.

Pearson charged $8,203 (U.S.) for a Boeing 747-400 to land in 2004, compared with Tokyo Narita's $8,777 fee, according to the Air Transport Research Society's survey of 116 airports. In 2003, when the survey included 102 airports, Pearson had a $7,965 landing fee, second to Narita's $8,216 charge.[3]

In 2004 Boeing 747-400 landing fees at other Canadian airports were sharply lower than at Pearson: Ottawa ($2,395), Montreal ($2,238), Halifax ($2,217), Vancouver ($2,146), Calgary ($2,033) and Edmonton ($1,872).[4]

Pearson also had the second-most expensive landing fees in 2004 in the two other aircraft categories surveyed, charging $1,715 for an Airbus 321-100 and $497 for a CRJ200-LR.[5]

[1] Air Transport Research Society, The ATRS Global Airport Benchmarking Report as cited in:

Jang, Brent. "Pearson second most expensive place to land." Globe and Mail 5 May 2005, B5

[2] Ibid.

[3] Ibid.

[4] Ibid.

[5] ibid


Ranking of top 12 highest airport landing fees in 2004[1]

Airport
Landing fee* ($U.S.)

1
Tokyo Narita
$8,777

2
Toronto Pearson
8,203

3
Osaka Kansai
7,643

4
Birmingham, England
7,035

5
Warsaw Chopin
5,954

6
New York LaGuardia
5,731

7
Oslo
5,510

8
Shanghai Hongqiao
5,465

8
Shanghai Pudong
5,465

8
Beijing Capital
5,465

8
Guangzhou Bui Yun
5,465

12
Vienna
5,463


source:
http://www.atac.ca/en/ourissues/adv...nding_fees.html


Posted by dEsidEL on Dec-09-2008 20:36:



As mentioned, here is a recent report published in late 2007, showing a reversal of course with respect to the increasing landing fees that the GTAA had been forced to gradually increase over the decade. It's definitely a step in the right direction, but I think we're still pretty up there when it comes to our charges.

If you're wondering why we charge what we do, it's directly related to the rent that the Federal Government charges the GTAA for operating the airport on government owned land. With the budget surpluses we were enjoying in the earlier part of the decade, you would think they would have lowered the rental charges to make us more competitive with airports like Buffalo but this simply wasn't the case. Now with the economy where it is today, one has to wonder whether this lowering trend will continue.

quote:

Pearson reducing landing fees
Last Updated: Wednesday, October 17, 2007 | 8:55 AM ET
The Canadian Press

Toronto's Pearson airport, long criticized for being one of the world's most expensive to use, is reducing its landing fees and terminal charges in a bid to attract more passenger and airline traffic.

The Greater Toronto Airports Authority, which operates the airport, said Tuesday that landing fees charged to airlines will decrease by 3.1 per cent and terminal charges will drop by 4.7 as of Jan. 1.

"This is fantastic news for our airline partners," stated GTAA chief executive Lloyd McCoomb.

"By pricing Toronto Pearson more competitively, we are able to decrease the cost of doing business, which is good for airlines, good for passengers and good for the region."

The move was cheered by travel groups and airlines, who have long pushed for a reduction in fees and charges by both airports and the federal government, saying they affect the competitiveness of Canada's air carriers.

"Air Canada is pleased by today's announcement that the GTAA is cutting fees at Toronto airport and we commend the authority for finding savings and alternative revenue sources," said Montie Brewer, CEO of Pearson's largest tenant.

"(We) now ask the Federal Government to follow the GTAA's example by reducing the rents it charges airports each year.� Ultimately, this is a regressive tax that stifles economic growth."

Landing fees are charged to the airlines to operate at Toronto Pearson, the busiest airport in Canada, with 31 million passenger in 2006.

They are also passed on to travellers � raising their ire when they discover the ticket price skyrockets once taxes and airport fees are included. Some Canadians instead choose to drive to U.S. airports, such as Buffalo, to save on their flights.

Terminal charges, for their part, are set to cover the operating costs for the common areas in the passenger terminals.

Same Barone, CEO of the Air Transport Association of Canada, also highlighted the ongoing issues of airport rents, fuel surcharges and security costs � all constant sticking points between travel groups and the government.

"This year, Pearson will pay more than $150 million to Ottawa (in rent)," he said.

"Our passengers really are paying that additional tax back to Ottawa, which does nothing for stimulating traffic growth."

But, he added, ATAC is "always pleased to have the cost that gets passed through to our passengers reduced," saying the airport authority "does deserve quite a bit of credit for that achievement."

"We also encourage them to do more for travellers because we're in a very competitive environment."

The GTAA did say it would continue to work to make the airport competitive "through cost containment, revenue generation and by working with air carrier partners."


source:
http://www.cbc.ca/canada/toronto/st...arson-fees.html


Posted by dEsidEL on Dec-09-2008 20:38:

quote:
Originally posted by slingshot
no, a trip to see digweed at fabric for a few hundred bucks less is what's next!!




as long as the BAA doesn't agree to continue increasing their fees!

http://news.bbc.co.uk/2/hi/business/7288937.stm


Posted by English Rachel on Dec-09-2008 20:39:

Yabadabadoooooo


Posted by Endlesswave on Dec-09-2008 21:53:


Posted by failsafe on Dec-10-2008 06:52:

This isn't going to change anything. It's going to continue to be the same players. It's not like Lufthansa or BA has any competition that isn't already in the market. It's not like there's companies with wide body jets just wishing for this to happen so they can bring prices down for everyone. Flying across the North Atlantic isn't something you do on a whim. It requires logistics that don't come cheaply, which i tickets.

This is even further exasperated by the fact that, even if someone wanted to get into the market, credit doesn't exist to do it. Certainly no one with hundreds of millions of dollars cash in the bank is going to sink it into the riskiest industry out there in times like these.

If you look at the airlines who's prices your complaining about, almost none of them are going to turn a profit in 2008. So it's not like they're out to gouge you. If you were to look back in history you'd see that your "crazy expensive" ticket from North America to Europe has done nothing but become cheaper for decades now.



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