Bad, Bad, Bad, Bad


Air Canada commented on the proposed increase in aviation excise fuel taxes in the Ontario budget, as well as the decision by Ontario Opposition parties to defeat the government’s proposed budget.

Calin Rovinescu, president and CEO of Air Canada, said: “As one of the largest private sector employers in the province of Ontario, I can say that the proposed increase to aviation fuel taxes is bad for our industry, bad for our employees, bad for our customers and ultimately bad for the economy of Ontario.”

Rovinescu argued that: “Ontario will continue to lose business to U.S. border airports and other provinces with more progressive perspectives on economic development. The approach on aviation rates, charges and taxes must go in the other direction.

And AC’s boss also said that the carrier “welcomes the decision of the opposition parties to defeat the Ontario budget and its punitive increases in aviation fuel excise taxes. The proposed budget would have increased costs to Canada’s aviation industry by as much as $100 million a year. Even before the budget, Ontario had the highest excise tax on aviation fuel in North America. The proposed increases to almost triple the excise fuel tax would have been passed on to air travellers and shippers, resulting in higher fares for travellers to and from Ontario, and negative economic consequences in Ontario and Canada including direct and indirect job losses.”

Rovinescu also made it clear that “Air Canada and its 12,000 Ontario-based employees will be looking for leadership from each of the parties on definitive measures to address the aviation cost structure in the upcoming Ontario election. We are calling on the parties to follow the lead of their provincial counterparts, such as B.C., and neighbouring competing U.S. states who recognize the value of the aviation industry as an economic engine and enabler of trade, not as a facile source of revenue to subsidize other government initiatives.”

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