Thu, January 6, 2005
Flight to the poorhouse
LINDA LEATHERDALE FUMES OVER TAXES ON PLANE TICKETS AND THE CROWN RENT JUMP AT PEARSON
By LINDA LEATHERDALE, BUSINESS EDITOR
TORONTO SUN
WHY AM I so shocked? On a $159 airline ticket to Florida, my
travel agent informs me I'll pay $185.13 in taxes. I nearly fall off my chair.
But, I should know. In many-a-column I've ranted on about the outrageous tax burden on flying our skies -- from navigation fees, a new air safety tax, security charges, airport improvement fees to immigration taxes, fuel surcharges and, of course, the dreaded GST on top of it all.
But, to really make my blood boil, this landed on my desk last night as I was wrapping up my column on yet another banner year for our hot record-breaking real estate market.
It was a news release warning the greedy taxman in Ottawa is again hiking Crown rents paid by Canada's airports, which have already skyrocketed by 25% since the tragic terrorist attacks of 9/11.
Now don't be fooled into thinking the whopping $300 million Ottawa is stiffing our airports in rent will somehow improve flight safety. The Crown rent money -- just like the Ontario FIBerals' hated health tax that's supposed to improve health care -- sits in general coffers, in easy reach of all those piggies at the tax trough.
Meanwhile, Toronto's Pearson International Airport -- from where I'll depart when I fly to Fort Lauderdale later this month -- is now the second most expensive airport in the world and the most expensive in North America to land a plane. With this new tax hike, Pearson will pay $140 million in Crown rent, which is 18% of its entire operating budget.
Believe me, the cost is passed on to the airlines and their travellers.
"It is time for the government to stop treating air travellers like cash cows," said Cliff Mackay, president and CEO of the Air Transport Association of Canada, which has teamed up with the Canadian Chamber of Commerce to fight back.
Mackay went on, "raising airport charges yet again, when the government is running large surpluses, is simply bad economic policy and runs counter to stated goals of job creation, economic growth and smart regulation."