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IATA blasts taxes and fees in Canada

‘It’s sky-way robbery’

MICHAEL BAGINSKI

Just because the Inter-national Air Transport Association (IATA) is headquartered in Canada, don’t expect any sentimentality to emanate from the organization’s Montreal home.

During a recent speech at Vancouver’s board of trade, IATA director general and CEO Giovanni Bisignani lashed out at this country’s federal government for using air travel as a cash cow, leaving little for the investors that have been wallowing in red ink for years.

As an example, he pointed to airport security.

“The Canadian government has made airport security into a very profitable business.” he blasted. “Between 2002 and 2005, the air travellers’ security charge collected $1.25-billion for the government. They spent only $820-million and surpluses are expected through 2008. Where are they spending the money? On other modes of transport. Canada is investing $115-million each a year on marine security and another $110-million will go to rail and public transport security. I will be polite and characterize this sky-way robbery as unfair.

It’s time for the federal government to accept the cost burden of aviation security.”

As such, Bisigiani says all national governments, including Canada’s, should make aviation security part of national security and not “give their citizens a separate bill.”

Aviation taxes also having IATA seeing red.

“I’ll be open and honest. Taxation, taxation and more taxation is not a recipe for competitiveness,” stated Bisigiani. “And having thrown open the doors to competition, it is time for the government to make fundamental changes. Canada’s tax revenue from aviation rose nearly 20 per cent per year between 2001 and 2005 totalling $800-million annually or 20 per cent of the industry’s

See IATA page 11

Cruise Holidays sailing to success

GREG COATES

Would you buy a diamond from a department store? Not likely. Chances are you would go to an expert, and that’s the theory Cruise Holidays lives by when it comes to selling cruises.

And it seems to be working. Founded in 1984, Cruise Holidays operates stores in both Canada and the United States, and was acquired by Carlson Travel Network Associates, Inc., in 2001. Carlson brands include T.G.I. Fridays,

See SAILING page 8