In Canada, Rent Relief …
… remains a top priority for airports. So says Canadian Airports Council (CAC) president/CEO Jim Facette. Although some relief was granted by the federal government in May 2005, Canadian airports continue to be strapped by high rents to the feds. In particular, says Facette, it’s an obstacle for the nation’s airports when competing globally.
“Let’s just talk about Toronto for a moment,” says Facette. “Toronto handles 31 million passengers a year, and is positioning itself to compete globally for international traffic. It’s going to compete with Chicago, JFK, and other like airports.
“If we’re going to compete on a level playing field, we need to get some cost certainty into the system. Reducing airport rent will go a long way in doing that,” he explains. “We have to take a step back and look at it from a competitive perspective. What we’re asking for is a policy environment that provides airports with the best possible scenario in which they can truly compete with airports around the world.
“Toronto’s in a competitive marketplace; Buffalo is just down the road.”
It’s been 15 years since Transport Canada divested itself of ownership of most of the nation’s airports, or transferred ownership to local authorities under long-term leases. It is the latter arrangement that continues to strap Canadian airports, says Facette. The revolution that has occurred at major Canadian airports since that divestiture is nothing short of extraordinary. It’s easy to appreciate the CAC’s position that unleashing their purse strings could result in significantly more development.
Facette’s comments are part of an in-depth one-on-one interview conducted recently with AIRPORT BUSINESS magazine. Watch for the expanded transcript in the upcoming August issue.
Thanks for reading. jfi
Toronto has found a very clever niche for itself - as a hub where Latin Americans can make connections to flights to Europe. Instead of transferring in Miami or NYC, where visas are required and customs/immigration personnel are not exactly customer-friendly, Latin Americans are now flying non-stop to Toronto and then transferring to trans-Atlantic flights. Some proportion - I don’t know what percentage - of Toronto’s growth is attributable to this niche.
Buffalo might be attractive for Toronto-originating passengers whose final destination is in the US, but otherwise the Buffalo airport isn’t competing head-to-head against Toronto. However, the airport in Hamilton, Ontario, is a contender due to its lower landing fees, and has been draining some domestic traffic from Toronto.
Toronto’s airport has its drawbacks: Landing fees are the highest in Canada. A taxi trip into the city is over $50, and rail transit into the city is a pipe dream. Air Canada, which dominates Toronto airport, seems perennially understaffed, with long lines for baggage drop-off and checked baggage often left behind.