WestJet CEO outlines actions for affordable air travel
The leader of western Canada's largest airline argues that air travel across the country is treated like a luxury, when it should be considered essential.
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WestJet CEO Alexis von Hoensbroech proposed several steps the federal government could take to make air travel more affordable for Canadians.
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The direct charge of government fees and infrastructure costs for an airplane ticket in Canada totals $133 — which includes sales tax, navigation fees, airport improvement fees and security fees.
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'If we look south of the border . . . it's significantly less,' said von Hoensbroech, showing data that the cost in the U.S. is $49, including excise tax and segment fees, a passenger facility charge and security fees.
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Reducing fees down to U.S. levels would 'stimulate enough demand' to feed another airline the size of WestJet, he said.
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Von Hoensbroech said over the last 30 years, airfares have gone down by 50 per cent for WestJet, when adjusted for inflation.
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'This is something that we as WestJet are actually very proud (of). We are the airline that brought competition into the country,' von Hoensbroech told the audience.
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However, he argued government-controlled fees, rates, taxes and charges went up by two-thirds in the last three decades.
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'The fact that this is so high is a barrier to flying for millions and millions of Canadians, because they cannot afford (to),' he said.
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Von Hoensbroech noted a World Economic Forum study that ranked air ticket price competitiveness in Canada 101st out of 119 countries.
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'This is not because airlines are evil, this is because there is such a high floor of fees and charges,' he said.
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'Guests should have the option to choose whether (they) want the compensation or (they) maybe don't take the compensation, but you get cheaper airfare,' he said.
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