Major airlines seeking a more competitive industry
March 22, 2013, Ottawa - The National Airlines Council of Canada (NACC) called upon the Ontario government to foster the development of a viable and competitive aviation industry in Ontario by eliminating the provincial tax on jet fuel for international flights.
The request was made in a joint submission with the International Air Transport Association (IATA) to the Standing Committee on Finance and Economic Affairs as part of its pre-budget consultations. IATA represents some 240 airlines representing 84% of global airline traffic. Included in the submission is a report, prepared by Prof. Fred Lazar of York University's Schulich School of Business, that details the benefits accruing to Ontario from elimination of the aviation fuel tax.
"Aviation is a major enabler of many sectors of the economy. Eliminating this tax will stimulate travel and tourism to the greater benefit of Ontario's economy. Moreover, Ontario would harmonize its tax policy with that of the national government as well as with the policies of most provinces," said George Petsikas, President of the NACC.
British Columbia recently eliminated its provincial tax on aviation fuel to increase its competitiveness and attract new services to Vancouver International Airport and the jobs that are created with the new services. NACC and IATA urged the Ontario government to recognize the value of the aviation industry as an economic engine, facilitator of growth and enabler of the travel and tourism trade, and eliminate its provincial fuel tax.