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Home International Customs

Canadian airlines benefit from tax meant for airport upgrades

byCT Report
01/03/2017
in International Customs
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OTTAWA: A passenger rights advocate wants Canadian airlines to stop profiting from fees intended for airport upgrades. Airport improvement fees are charged at every major airport, in the range of $23 to $30. The fee is included in the taxes on each departing ticket.  CBC News has learned airports give between four and seven per cent of the money collected to the airline carrying the passenger. The airline’s portion is not disclosed on passenger tickets, or in most cases, on airport websites.

“The question about whether airlines should be dipping into money that is earmarked for the airports — that’s a no brainer. That’s beyond debate. That’s something that the public should be concerned [about] and should be challenging,” said Gabor Lukacs, an airline passenger rights advocate. Proceeds from the airport improvement fee go toward infrastructure projects, including runway extensions, terminal upgrades and other renovations within the airport.

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