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ATAC Welcomes Air Policy Review and Encourages Competitiveness

The Air Transport Association of Canada today welcomed Minister Cannon's initiative to review Canada's international air policy and urged the government to reduce aviation-specific taxes, to make Canadian air carriers more globally competitive.

As with all international trade negotiations, the Government of Canada should pursue discussions with those trading countries that offer significant reciprocal opportunities for Canada, while working to put the Canadian aviation industry on a level playing field with our international competitors.

"The aviation industry in Canada is a world leader in service and innovation. We welcome fair competition and the opportunities it provides", said ATAC President and CEO Sam Barone.

"Hopefully, today's announcement will be followed by a series of tax reduction measures to make the Canadian aviation industry more competitive, as Minister Flaherty committed to doing in a recent speech," concluded Barone.

Last week, Finance Minister Jim Flaherty acknowledged the need for tax reductions to address Canada's international competitiveness: "I don't think I need to convince anyone in this room that taxes in this country are still much too high. We've made progress in this area but more needs to be done if we are to strengthen our economy and remain at the forefront of this highly competitive global economy. … Canada must continue to improve our tax competitiveness even further."

Nowhere is Canada's competitive gap greater than in the field oF commercial aviation.