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Jan 7, 2004
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'Old Europe' shows North America how to help airlines
Dateline: Wednesday December 22, 2004

A day after the German Transport Ministry announced plans to slash airport landing fees by 28% and air navigation overflight fees by about 20% from Jan. 1 (ATWOnline, Dec. 21), North American airline trade groups blasted new aviation-related tax increases by the US and Canadian governments.

Drawing unfavorable comparisons with the German example, Air Transport Assn. of Canada President Cliff Mackay stated: "In Canada the federal government continues to drive up airport fees by imposing ever-rising rental charges. Airport rent will rise another 30% in Montreal on Jan. 1. Landing fees at the key hub in Toronto will rise again next month by 17%. We've faced two substantial increases in air navigation charges since 9/11. The trend is clear across the country."
And across the border, the Washington-based Air Transport Assn. attacked federal bureaucrats for sneaking through a 61% increase in fees associated with the Agriculture and Plant Health Inspection Service "without prior public comment or congressional review."

ATA said the increase, which goes into effect Jan. 1, means international travelers will pay $4.95 per flight--up from $3.10 currently--to cover inspections of agricultural products entering the US. For carriers, aircraft inspection fees will increase from $65.25 to $70, with more increases to come in the future, ATA said. The net result will be $680 million in additional charges over a six-year period to the airline industry, while the National Taxpayers Union estimated the total cost for both consumers and airlines at $2.2 billion through 2010.--Perry Flint



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