Budget 2023: IATA Dissatisfied

L’IATA est déçue du budget fédéral 2023 du Canada (pdf)

Montreal –

IATA expressed disappointment with the lack of positive measures in Canada’s 2023 Federal Budget to strengthen and enhance its air transport system and global competitiveness.

‘IATA hoped the Federal Budget would include measures to support the recommendations from the House of Commons Standing Committee on Transport, Infrastructure and Communities. As Willie Walsh, IATA’s Director General, wrote to Canada’s Deputy Prime Minister and Minister of Finance, as well as to the Minister of Transportation, that was not the case.

In his letter, Walsh welcomed CATSA’s proposal to receive C$1.8 billion over five years. This will increase service levels, reduce the wait time for passengers, and strengthen airport security measures. “However, the ATSC is set to increase by 33% as a result of this increase.”. As a result, air travel for Canadians becomes even less affordable.”.

Walsh is also concerned about the proposal to strengthen the authority of the Canadian Transportation Agency (CTA) and make airlines more accountable for service failures and disruptions. To support smooth airline operations and a positive traveller experience, we strongly encourage the government to share these accountability responsibilities across all components of the commercial air system. It includes airlines, airports, CATSA, CBSA and Nav Canada.” Walsh pointed out that imposing a regulatory charge on airlines to recover passenger complaints will add to their high costs.

Efforts by the aviation industry to reach net zero carbon emissions by 2050 should be supported by the Canadian Government, Walsh said. Specifically, he requested that the Government open consultations with industry on the C$15 billion in funds intended to promote alternative fuel development.

A healthy, sustainable aviation industry contributes enormously to the country’s well-being, Walsh said. A prior to COVID, Canada’s aviation sector contributed C$51.4 billion to the country’s GDP and supported 633,000 jobs. Canada’s commercial aviation industry is a powerful economic engine. It is imperative that the Government of Canada removes obstacles to the continued growth of this sector and makes it more competitive abroad,” Walsh stated.

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