A number of issues were raised by the Low Cost and Regional carriers during telephone discussions and in letters included with the survey responses. The general perception amongst these carriers is that "our voice has mostly been ignored with the harried implementation of the ATSC." Letters received from several carriers are included in Appendix E.
There are a number of reasons that the Low Cost and Regional carrier segments of the industry feels this way. These are summarized below.
Example: Short-haul charter of $1821 (for entire aircraft excl. ATSC)
Assuming the aircraft is fully loaded with 12 passengers, there would be an additional $288 charged for the ATSC (12 x $24). This represents 16% of the base charter price
Example: Round trip from Terrace to Victoria, connecting through Vancouver South Terminal on an independent airline with no code-sharing arrangements with any other carrier.
Connecting passengers pay the $12 for each leg of their flight; therefore the passenger will pay a total of $48 in ATSC. Security is neither required nor provided for these passengers at any of their stops.
One air taxi firm which has been in operation for over 15 years, has seen operating costs more than double due to increased insurance premiums and escalating airport improvement fees (AIF), airport terminal fees, NAV Canada fees, etc. With the onset of the $24 ATSC, the owner questions the viability of his firm. "Because of this security tax, I have been forced to lower my fares to compete with a competitor who just happens to fly out of airports not on the designated list. I also had to cancel all my weekend flights indefinitely as well as cancel my mid-afternoon flight until further notice. Sadly, in addition I have had to contact an aircraft broker to place my backup aircraft for sale. This is directly due to the decrease in passenger loads because of the seemingly never-ending fee increase."
Another carrier indicated that loads are down 50% on their short-haul flights, and that they "might as well go out of business because all of the extra surcharges are killing us". This particular carrier recognized the need for the ATSC but thought that it should not exceed $5.
One charter operator conducted an on-board survey asking passengers their opinion of the $12 per leg tax. The largest group stressed the inequities of a flat tax imposed on low fares and short-haul operators, including at smaller airports where no enhanced security was likely to be seen; while another group said they would not mind paying a fee for service, as long as security improved.
The Regional and Low Cost carriers responding to the survey brought up a number of issues with the ATSC which should be addressed. Suggestions made by some of these carriers for addressing these issues include:
"ATSC is excessive and should not be charged at airports or to carriers where no services are rendered or that services are not utilized by carrier decision."
"I strongly encourage the Government to adjust this security tax fairly and proportionately so that the taxpayers get some value for what they pay and that the costs are spread fairy according to the costs of the tickets."
"Small carriers not requiring the same screening and security procedures as is the case in many parts of this country, that they be exempted from the fee all together."
"Create a level playing field for all carriers."
The major findings relating to the application of the ATSC for Low Cost and Regional carriers and from the analysis of traffic levels since the application of the fee are summarized below.
A review of trends in air traffic was conducted for Low Cost carriers, for selected short haul city pair markets, and for other regional markets.
For Low Cost carriers, data limitations related to changes in the air transportation industry required that the examination of time trends be broadened to include most mainline air transportation services in Canada. RPKs were used as an aggregate measure of air travel demand and showed for the first eight months of 2002, overall passenger traffic for Low Cost and Mainline carriers trailed 2001 traffic levels by about 7%. Also, for Low Cost and Mainline carriers, seasonal growth in aggregate RPKs over the months following the introduction of the ATSC was slower in 2002, compared to 2001.
Information concerning selected short haul markets was available from carriers providing passenger information by route. This information was used to compare the change in traffic over the 5-month period from April through to August 2002 with the change over the same period in 2001. This comparison removes the direct effect of the events of September 11, 2001, but could be influenced by any "bounce-back" from the large drop in traffic that occurred immediately following those events, or to other external factors such as economic activity.
A selection was made of the larger short haul markets subject to strong competition from highway transportation. The expectation is that these markets have lower fares and as a result, would be subject to greater price elasticity. The selected city pairs include city pairs of less than 500 km, with a volume of more than 5,000 seats per week and subject to strong highway competition.
The review of traffic trends indicates that passenger volumes on selected short haul routes are down 10.9% in Western Canada and down 3.8% in Eastern Canada. The larger drop in Western Canada may be associated with lower airfares and shorter driving times on the selected routes in Western Canada. Traffic on particular short haul routes has dropped by even greater amounts.
For both the selected short haul markets and the Low Cost carriers, the observed traffic patterns are consistent with the expected influence of the ATSC. However, the magnitude of the changes in traffic cannot be attributed solely to the ATSC as many other factors have been at play:
Further qualifications to the analysis of time trends for Mainline and Low Cost carriers concerns the significant change in the mix of markets and services between 2001 and 2002. It would appear that an examination of aggregate trends in RPKs provides little in the way of insight as to the effect of the ATSC on the markets served by Low Cost carriers.
Finally, as concerns other regional markets, a comparison of the trend in passengers and ASKS (2002 compared to 2001, over the four month period April through July) was conducted for city pairs in the north, and for city pairs in the south served by Jazz, other than those included in the selected short haul routes, and smaller carriers.
Northern city pairs have benefitted from competition among carriers, with ASKs continuing to show modest growth. For Southern city pairs, the trend was not as strong, with ASKS over most carriers experiencing reduced growth and a modest reduction in passengers on short haul routes.
|Code||Air carrier||City of Head office||Prov.||Aircraft Fleet||Points Served||ATSC Airports|
|GGN (AC)||AIR ALLIANCE / AIR GEORGIAN LTD.||Mississauga,||ON||Beech 1900,
Beech 90, C550
|Kingston, Sarnia, Toronto, Rochester,
Albany, Dayton, Fort Wayne,
Grand Rapids, Louisville, Manchester,
Syracuse, Kalamazoo, Montreal
|4 + 9 US|
|YN||AIR CREEBEC INC.||Val d'Or||QC||Beech 100,
Embraer 100, HS748
Chisasibi, Eastmain, Fort Albany,
La Grande, Montreal, Moosonee,
Nemiscau, Pewanuk, Timmins,
Val d'Or, Waskaganish, Wemindji,
|3H||AIR INUIT||Dorval||QC||Beech 100, DHC6, DHC8-100/200/300/400, HS748,||Kuujjuaq, Kangiqsuallujjuaq, Puvirnituq, Akulivik, Kuujjuaraapik, LaGrande, Sanikiluaq.|
|AIR MIKISEW LTD.||Fort McMurray||AB||Beech 100, Beech 99, BN-2 C185, C206, C206, C207, C207, C208, DHC2, Jetstream31, PA31||Edmonton Muni., Fort Chipewyan, Fort McMurray, La Loche (SK)||2|
|4N||AIR NORTH||Whitehorse||YT||B737 100/200, Beech 99, HS748||Dawson, Fairbanks, Inuvik, Juneau, Old Crow, Whitehorse||1 + 3 US|
|AIR SATELLITE INC.||Baie Comeau||QC||Beech 100, C152,
C172, C310, C335,
|Baie-Comeau, Havre-St-Pierre, Port Menier, Quebec City, Montreal, Rimouski, Sept-Iles||4|
|8T||AIR TINDI||Yellowknife||NT||Beech 200, Beech 90, C185, C208, CHRIS-A-1, DHC2, DHC3T, DHC6||Fort Simpson, Lutsel'ke, Rae Lakes, Snare Lake, Whati, Yellowknife,||3|
|AIRSPEED AVIATION INC.||Abbotsford||BC||C402, C414||Abbotsford, Victoria||2|
|ALTAIR AVIATION LTD.||Pitt Meadows||BC||C172, C172||Nanaimo, Pitt Meadows, Victoria||2|
|QC||AVIATION QUEBEC LABRADOR LTEE||Sept-Iles||QC||DHC6, Embraer 110, PA31||Blanc Sablon, Chevery, Gethsemani, Kegaska, Natashquan, Pakuashipi, Schefferville, Sept-Iles, Tete-a-La Baleine, Wabush.||2|
|BAXTER AVIATION||Nanaimo||BC||C185; DHC2||Vancouver, Nanaimo||2|
|JV||BEARSKIN AIRLINES||Sioux Lookout||ON||Beech 100, Beech 99, SW4, SW5, PC12||Angling Lake, Bearskin Lake, Big Trout Lake, Buttonville, Cat Lake, Deer Lake, Dryden, Flin Flon, Fort Frances, Fort Hope, Fort Severn, Getaldton, Kasabonika Lake, Keewaywin, Kapuskasing, Kenora, Kingfisher Lake, Lansdowne House, Muskrat Dam, North Bay, North Spirit Lake, Ottawa, Pickle Lake, Pikangikum, Red Lake, Round Lake, Sachigo Lake, Sandy Lake, Sioux Lookout, Sault Ste. Marie, Sudbury, Summer Beaver, The Pas, Thunder Bay, Timmins, Webequie, Winnipeg, Wunnumin Lake, Buttonville/Toronto.||8|
|MO||CALM AIR INTERNATIONAL LTD.||Thompson||MB||C208, HS748, PA31, SF340||Arivat, Baker Lake, Chesterfield Inlet, Churchill Dryden, Flin Flon, Gillam, Leaf Rapids, Lynn Lake, Pukatawagan, Rankin Inlet, Shamattawa, South Indian Lake, The Pas, Thompson, Thunder Bay, Whale Cove, Winnipeg||3|
|5T||CANADIAN NORTH AIRLINES||Yellowknife||NT||B737-100/200, F28||Cambridge Bay, Calgary, Edmonton, Ekati, Fort Smith, Hay River, Inuvik, Iqaluit, Norman Wells, Ottawa, Rankin Inlet, Yellowknife||5|
|W2||CANADIAN WESTERN AIRLINES||Richmond||BC||C401||Vancouver, Nanaimo, Tofino||2|
|C6||CANJET||Enfield||NS||B737-100/200, F28||Toronto, Halifax, St John's, Montreal, Ottawa||5|
|9M (AC)||CENTRAL MOUNTAIN AIR LTD||Smithers||BC||Beech 1900||Prince George, Dawson Creek, Calgary, Kamloops, Lloydminster, Terrace, Kelowna, Smithers, (plus code share with AC: Vancouver, Cranbrook, Edmonton Intnl, High Level, Lethbridge, Medicine Hat, Peace River, Penticton, Rainbow Lake)||8|
|CORPORATE EXPRESS AIRLINES||Calgary||AB||Jetstream 31, Saab SF 340||Calgary, Fort McMurray, Edmonton Municipal||2|
|7F||FIRST AIR||Carp||ON||ATR 42, B727, B737-100/200, Beech 99, DHC2, DHC6, DHC7, HS748, L382||Cambridge Bay, Cape Dorset, Clyde River, Coral Harbour, Edmonton, Fort Simpson, Port Smith, Gjoa Haven, Hall Beach, Hay River, Holman, Igloolik, Iqaluit, Kimmirut, Kugluktuk, Kuujjuaq, Montreal, Nanisivik, Ottawa, Pangnirtung, Pevy Bay, Pond Inlet, Rankin Inlet, Resolute Bay, Taloyoak, Vancouver, Whitehorse, Winnipeg, Yellowknife||9|
|H3||HARBOUR AIR LTD.||Richmond||BC||C180, C185, DHC2, DHC3, DHCT||Prince Rupert, Sandspit, Vancouver, Vancouver Harbour, Victoria Harbour, Masset, Nanaimo||2+|
|BH||HAWKAIR AVIATION SERVICES LTD||Terrace||BC||Atl 98 Carvair, Bristol BR70, DHC8-100/200/300/400||Prince Rupert, Smithers, Vancouver, Terrace||4|
|JB||HELIJET INTERNATIONAL||Richmond||BC||AS350, AS355, B206, R22, S-76||Seattle (WA), Vancouver, Victoria||2 + 1 US|
|INTEGRA AIR||Lethbridge||AB||Beech King Air 100||Edmonton City Centre, Lethbridge|
|QK (AC)||JAZZ AIR INC.||Enfield||NS||BAE 146, Beech 1900, CRJ (CL65), DHC8-100/200/300||59 cities in Canada||59 + US|
|SG||JETSGO||Saint-Laurent||QC||MD-83||Halifax, Montreal, Toronto, Vancouver, Winnipeg, Stephenville||6|
|WJ||LABRADOR AIRWAYS LTD.||St. Johns||NF||Beech 1900, C208, DHC3T, DHC6||Black Tickle, Cartwright, Charlottetown, Davis Inlet, Fox Harbour, Goose Bay, Hopedale, Makkovik, Mary's Harbour, Nain, Port Hope Simpson, Postville, Rigolet, St. Anthony, St. Johns, Stephenville||4|
|NORTHERN THUNDERBIRD AIR INC.||Prince George||BC||Beech 1900, Beech 200, C172, C172, C185, C195, C206, C206, C208||Dease Lake, Smithers, Terrace, (also on demand services Finbow, Fort Ware, Mackenzie, OstinaTofino, Tsay-ush, Swannell, Watson Lake)||1|
|J3||NORTHWESTERN AIR LEASE LTD.||Fort Smith||NT||Beech 90, Beech 99, C401, Jetstream 31||Fort Smith, Fort McMurray, Grande Prairie, Yellowknife||3|
|8P||PACIFIC COASTAL AIRLINES||Richmond||BC||Beech 1900, Beech 200, DHC2, DHC3T, Embraer110, Goose, Shorts360||Anahim, Lake, Bella Bella, Bella Coola, Campbell River, Comox, Port Hardy, Powell River, Vancouver (also on demand to Hakai Pass, Klemtu, Nanaimo, Rivers Inlet)||4|
|PASCAN AVIATION INC.||Ste-Foy||QC||PC12, PC12||Baie-Comeau, Blanc-Sablon, Bonadventure, Chevery, Iles-dela-Madeleine, Montreal (Dorval), Quebec, Rouyn, Sept-Iles, St.Augustin, Val D'Or||5|
|PEACE AIR LTD.||Peace River||AB||C172, C210, PC12, PA31, PA34||Calgary, Edmonton, Fort St. John, Fort Nelson, Grande Prairie, Jasper, Peace River, Prince George, Cold Lake, High Level, Lloyminster, Terrace||5|
|PB||PROVINCIAL AIRLINES/ INTERPROVINCIAL AIRLINES||St. Johns||NF||Beech 200, BN-2, C550, DHC6, SW3, SW4, PA31, SF340||Blanc Sablon, Churchill Falls, Davis Inlet, Deer Lake NF, Goose Bay, Halifax International Apt, Hopedale, Makkovik, Nain, Postville, St Anthony, St Johns, Stephenville, Wabush.||6|
|K9||SKYWARD AVIATION LTD.||Thompson||MB||Beech 100, Beech 1900, Beech 200, BN-2, C172, C172, C207, C208, C310, C402, C414, C421, C441, Embraer 110||Arviat, BakerLake, Brochet, Chesterfield Inlet, Churchill, Garden Hill, Gods Lake Narrows, Gods River, Lac Brochet, Norway House, Oxford House, Rankin Inlet, Shamattawa, South Indian Lake, St. Theresa Point, Tadoule Lake, Thompson, Whale Cove, Winnipeg, York Landing||2|
|AC||TANGO BY AIR CANADA||Dorval||QC||Airbus 330, Airbus 340, Airbus 319/320/321, B737-100/200, B747, B747-400, B767, CL65, DC9||Toronto, Abbotsford, Calgary, Charlottetown, Deer Lake, Edmonton, Fredericton, Gander, Halifax, Kelowna, London, Montreal, Ottawa, Quebec City, Regina, Saint John, Saskatoon, Saint John's, Thunder Bay, Vancouver, Victoria, Windsor, Winnipeg||21|
|TRANS CAPITAL AIR||Toronto||ON||DHC7||Montreal, Red Lake, Sudbury,Thunder Bay, Timmins,Toronto, Val D'Or||6|
|9T||TRANSWEST AIR||Prince Albert||SK||Beech 100, Beech 1900, Beech 55, Beech 58/58TC, Beech 99, B206, C172, C185, C310, C402, C441, DHC2, DHC2T||Fond du Lac, La Rage, Points North, Prince Albert, Regina, Saskatoon, Stony Rapids, Uranium City, Wollaston||3|
|WS||WESTJET AIRLINES LTD.||Calgary||AB||B737 - 100/200, B737 - 600/700/800/900||Abbotsford, Calgary, Comox, Edmonton, Grande Prairie, Hamilton, Kelowna, Moncton, Ottawa, Prince George, Regina, Saskatoon, Sudbury, Thunder Bay, Vancouver, Victoria, Winnipeg||17|
|Air Carriers Surveyed but Do Not Operate Scheduled Passenger Flights|
|VOYAGEUR AIRWAYS||North Bay||ON||Beech 100, Beech 200, DHC7,||North Bay, Montreal||2|
|WESTERN EXPRESS AIRLINES INC.||Richmond||BC||Beech 200, F27, SW3, SW4, Falcon 20, PA31||Calgary, Edmonton, Nanaimo, Terrace, Vancouver, Victoria, Whitehorse||7|
|NORTHERN SKY AVIATION||High Level||AB||PC-12 (3)||Abbotsford, Calgary, Edmonton City Centre, High Level, Rainbow Lake||2|
|Air Carriers Not Surveyed|
|6L||AKLAK AIR||Inuvik||NT||DHC 6-300, Beech 99||Fort McPherson, Paulatuk, Sachs Harbour, Tuktoyaktuk||0|
|J4||BUFFALO AIRWAYS||Yellowknife||NWT||DC-3, DC-4, C-46, Beech 95, C185, NO6, A-90, B55||Northwest Territories and Yukon||1|
|FK||KEEWATIN AIR LIMITED||Winnipeg||MB||Beech 200, SW2, Learjet 35, PC12||1|
|4K||KENN BOREK AIR LTD.||Calgary||AB||Beech 100, Beech 200,Beech 55, Beech 90, Beech 99, C185, DC3, DHC6, Embraer 110||Arctic Bay, Cape Dorset, Grise Fiord, Iqaluit, Nanisivik, Pang nirtung, Pond Inlet, Qikiqtarjuaq, Resolute Bay||1|
|BZ||KEYSTONE AIR SERVICE||Swan River||MB||PA-34-200, PA-31-310, PA-31-350, PA-28-140,Beech 99, Beech 200||Swan River, Winnipeg, Red Deer and other locations||1|
|XC||KD AIR||Vancouver||BC||Cessna Skyhawk C172,Piper Navajo PA31-310, Piper Chieftain PA31-350||Vancouver Intern'l Airport, Vancouver Island & Texada Island||1|
|UJ||MONTAIR AVIATION||Delta||BC||PC-12, PA-34-200T, C172||Boundary Bay and other locations||0|
|U7||NORCANAIR (operated by Northern Dene Airways Ltd)||Prince Albert||SK||Metroliner III||Saskatoon, Prince Albert, La Ronge, Wollaston, Stony Rapids, Fond-du-lac and Uranium City||2*|
|NORTH CARIBOO AIR||Fort St. John||BC||Beech 100, Beech 1900, Beech 200, Beech 58/58TC, Beech 90, C206, DHC6, PA31||1|
|PERIMETER AIRLINES (INLAND) LTD.||Winnipeg||MB||Ceech 55, SW3, HS125, Learjet 35||Berens River, Brandon, Brochet, Cross Lake, Dauphin, Fort Severn, Garden Hill, Gods Lake Narrows, God's River, Lac Brochet, Norway House, Oxford House, St. Theresa Point/Wasagamack, Red Sucker Lake, Shamattawa, Tadoule Lake,Thompson||1|
|WASAYA AIRWAYS LP||Thunder Bay||ON||HS-748, C208, Beech 1900, PC-12||Northeast Manitoba, Northwest Ontario||1|
|8O||WEST COAST AIR||Vancouver||BC||DHC-6 (Floats), DHC-2 (floats)||Vancouver, Victoria, Whistler, Tofino, Campbell River||0|
|* Operated to only one ATSC airport in September 2002|
Summary of Aircraft Types Used by Air Carriers Surveyed
|Aircraft Type||Passenger Seats||# Flights|
|Aerospatiale Ecureuil AS350 /AS355 2||5||5||5||42|
|BAe (HS) 748||33||44||37||193|
|BAe 146-200 (Passenger)||85||85||85||414|
|BAe Jetstream 31||18||19||19||167|
|BAe Jetstream 32||19||19||19||15|
|Beechcraft (Light Aircraft)||4||14||14||532|
|BE 1900/BE King Air 200||15||15||15||22|
|Beech King Air 100||10||14||11||93|
|Beechcraft 1900 C or D||19||19||19||1436|
|Beechcraft C99 Airliner||12||12||12||40|
|Boeing 727 (Mixed Configuration)||70||70||70||20|
|Boeing 737 any Series Passenger||120||125||125||1141|
|Boeing 737-200 (Mixed Configuration)||60||117||81||538|
|Canadair Regional Jet||50||50||50||188|
|Cessna (Light Aircraft)||6||8||8||223|
|Cessna 335, 337||4||6|
|Cessna 550 (jet)||7||12|
|De Havilland DHC-2 Beaver||6||6||6||262|
|De Havilland DHC-3 Otter||14||14||14||96|
|De Havilland DHC-6 Twin Otter||9||37||17||671|
|De Havilland DHC-8 Dash 8 100||37||37||37||2884|
|De Havilland DHC-8 Dash 8 Series 300||50||50||50||1193|
|De Havilland DHC8 Dash-8 Series any||37||37||37||252|
|Embraer EMB-110 Bandeirante||14||18||17||475|
|Fairchild Metroliner (SW3, SW4)||15||19||19||514|
|Fokker F28 Fellowship all Series||75||75||75||62|
|McD-Douglas MD-80 all Series||150||150||150||83|
|Piper (Light Aircraft)||8||8||8||16|
|Saab SF 340||33||34||34||333|
|Airport||Distance to Airport (km)||Access Time (min)||Time Prior to Departure (min)||Egress from Airport (min)|
|YXD||Edmonton City Centre||4.0||8||30||10|
|Other Minor Airports||15||20||5|
|Note: travel and airport times were calculated for both the outgoing and return segments of the trip and averaged to give a representative time for the OD city pair.|