Alexis von Hoensbroech is urging the federal government to review Canada’s user-pay model of airport finance, which relies on passengers to fund operations and improvements
WestJet Airlines’ top executive is calling for a freeze on the government fees imposed on passengers and a halt to airport rent collection by Ottawa.
“There’s no other place in the world where it’s so expensive to operate an airline,” Mr. von Hoensbroech said in an interview, “and this is not just because of the distance, but also because of the high cost of infrastructure.” Mr. von Hoensbroech excludes the airport improvement fees from his call for a freeze. “The airports have no other option than to charge these type of improvement fees because they have to recover their investments and repay their loans,” he said.
The Canadian Airports Council has called on the government to eliminate rent payments for the smaller airports and cap the amounts paid by large hubs, allowing the airports to invest the money in infrastructure and servicesWestJet, founded as a regional, low-cost airline, controls about 33 per cent of the domestic market, according to aviation data company Cirium. The airline employs 15,000 people. Montreal-based Air CanadaMr.
One benefit is that the airports are controlled locally, and reflect the priorities of the community in which they run.
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