The International Air Transport Association (IATA) has expressed 'shock and disappointment' over the Ontario, Canada government's proposal to more than double the province's aviation fuel tax from C$02.7 to C$06.7 per litre.
The increase will add more than C$100 million per year to the cost of air transport in the province.
"At a time when the government is proposing to spend some C$2.5 billion to attract businesses to Ontario, why make air connectivity more expensive?
Businesses depend on cost-efficient air connections. So the proposal runs at cross-purposes to the initiative to attract new investment by making the province less competitive," said Tony Tyler, IATA director general and ceo.
"If implemented, this tax hike could literally drive travellers and shippers away from Ontario's airports. Aviation is intensely competitive and air travellers and businesses have options to spend their dollars elsewhere, using nearby airports," said Tyler.
According to the Hotel Association of Canada's Annual Travel Survey, 17 per cent of Canadian travellers already cross borders seeking cheaper tickets.
The International Air Transport Association (IATA) has expressed 'shock and disappointment' over the Ontario, Canada government's proposal to more than double the province's aviation fuel tax from C$02.7 to C$06.7 per litre.
The increase will add more than C$100 million per year to the cost of air transport in the province.
"At a time when the government is proposing to spend some C$2.5 billion to attract businesses to Ontario, why make air connectivity more expensive?
Businesses depend on cost-efficient air connections. So the proposal runs at cross-purposes to the initiative to attract new investment by making the province less competitive," said Tony Tyler, IATA director general and ceo.
"If implemented, this tax hike could literally drive travellers and shippers away from Ontario's airports. Aviation is intensely competitive and air travellers and businesses have options to spend their dollars elsewhere, using nearby airports," said Tyler.
According to the Hotel Association of Canada's Annual Travel Survey, 17 per cent of Canadian travellers already cross borders seeking cheaper tickets.
