Northern airlines not on board with Yellowknife airport fees

Northern airlines want the Northwest Territories government to put the brakes on planned Yellowknife airport fees, saying travellers from remote communities could see an extra $48 on their tickets.

Airlines say cost of increased fees will be passed on to customers

Guy Quenneville · CBC News · Posted: Feb 13, 2017 9:00 AM EST | Last Updated: February 13, 2017

Northern airlines widely oppose proposed new and increased fees for travellers and companies using the Yellowknife airport, says the Northern Air Transportation Association. (GNWT)

Northern airlines want the Northwest Territories government to put the brakes on planned Yellowknife airport fees, saying travellers from remote communities could see an extra $48 on their tickets.

The territorial government wants to use the fees to pay for things like common use terminals like those seen in the south. (GNWT)

MLAs in the N.W.T Legislature will soon debate the bill that, if passed, would allow the territorial government to collect new Yellowknife airport improvement fees charged on airline tickets: $20 for people flying south from Yellowknife, $10 for those headed north of the city.

The government says it will use the money to finance much-needed upgrades and additions to the airport.

The same bill would also significantly hike the landing and general terminal fees airlines pay to the government — a plan airlines widely oppose.

"Any new taxes and tax increases imposed at YZF will be passed directly onto consumers," said Glenn Priestley, the executive director of the Northern Air Transportation Association (NATA), which represents 36 commercial airlines in the three territories, including Canadian North and First Air.

"The industry doesn't have the ability to pay for this tax increase without raising prices,' Priestley said. "The increased costs will also impact cargo operators, so all goods and services traveling to, from or through YZF will see price increases."

Yellowknife MLA Cory Vanthuyne chairs a committee calling on the government to phase in the fees gradually.

Both NATA and the committee of regular MLAs that has reviewed the bill say the airport improvement fees would actually come to $29 northbound and $19 southbound once airlines' higher ticket prices are taken into account.

That could particularly hurt residents from smaller N.W.T. communities, says Cory Vanthuyne, chair of the standing committee on economic development and environment.

"Travellers from remote communities may be charged an additional $48," he said while presenting the committee's findings in the legislative assembly last week.

"Arriving in Yellowknife on a regional carrier, these passengers would pay an extra $29 to travel south, then an extra $19 [when they] return to their home community [from Yellowknife]."

According to figures shared by the government, some new landing fees could rise by more than 200 per cent.

Airlines are particularly concerned about potential increases to the fees they pay for landing at the Yellowknife airport and say they'd have to pass those increased costs on to customers. (NATA)

The government has said it charges some of the lowest aeronautical fees in the country.

Security area 'the only urgent need'

NATA says the federal government should pay for what changes are needed at the Yellowknife airport.

"The only urgent need we hear from our members is to improve the flow through the security area," said Priestley.

The only area of the Yellowknife in need of "urgent" change is the security area, says the Northern Air Transportation Association. (GNWT)

But First Air doesn't even share that view.

"As far as we're concerned and aware of, there hasn't been a direct correlation," said Dan Valin, a spokesperson for First Air, when asked whether long security wait times have made the airline's customers late for flights.

As for how much general interest First Air has in improvements at the airport, Valin said: "The only thing that matters most to us is the service that our customers get on our flights. We can't control anything on the outside."

Promotional video says nothing of fees

While stopping short of opposing the bill, the committee chaired by Vanthuyne is concerned the proposed fees "are not well understood by the public."

A four-minute promotional video added late last year to the Department of Transportation's website makes no mention of the proposed fees, speaking only of needed investment in the airport.

A promotional video for the government's plan makes no mention of fees. (GNWT)

"Members stress the importance of clearly communicating the introduction of the new revolving fund to the public," said Vanthuyne.

The committee has also recommended that the fees and increases be phased in gradually, and that the government's economic advisory committee include (in addition to business reps) the City of Yellowknife and Aboriginal governments.

They also want that committee to report back every year to the public.

'Negative effect' on tourism also feared

Airlines aren't the only group fearing potential economic consequences from the fees, says Vanthuyne.

"NWT Tourism firmly believes that higher airfare will have a negative effect," says Vanthuyne. (GNWT)

"N.W.T. Tourism firmly believes that higher airfare will have a negative effect on tourism operators and other businesses," he said.

"The organization highlighted that it was not aware of any analysis showing how the Northwest Territories' tourism industry could absorb the impact of higher airfares."