IATA says Canada should not privatize airportsStaff Writer | March 30, 2017
The International Air Transport Association (IATA) asked the Canadian Government to improve the competitiveness of its aviation sector by prioritizing the elimination of Crown Rents over consideration of airport privatization.
Air travel More than 4,000 jobs
That’s a C$5 billion disincentive to travel, to visit this wonderful country or to plan a business trip. Eliminating Crown Rents would boost Canada’s GDP by over C$300 million annually, create more than 4,000 jobs and generate an additional C$111 million in tax receipts.
“This should be the priority,” said Alexandre de Juniac, IATA’s Director General and CEO.
The call to abandon Crown Rents was made in a speech to the Montreal Council on Foreign Relations in which de Juniac congratulated the Canadian government for not including airport privatization in its 22 March budget announcement.
“We hope that Transport Minister Marc Garneau’s motivation to defend the interests of travelers will keep the privatization idea on the back-burner permanently. Let me be completely unambiguous. Canada will regret it if the crown jewels are sold,” said de Juniac.
De Juniac elaborated on his concerns noting the industry’s disappointment with privatizations to date. “We have not seen a regulatory framework anywhere in the world that has been able to successfully balance profit and public interest over the long-term.
“But we have seen airport privatizations dent a country’s competitiveness by increasing the costs of mobility and compromising service levels,” said de Juniac. ■