Friday, November 22, 2024

Airline CEOs weigh in on APPR and more at IATA-NACC Aviation Day Canada

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Panel discussions frequently circled back to these talking points …

. Air transport’s vital role for the Canadian economy, its people and increasing the sector’s contribution to the country’s GDP

. The need for air transport to continue to provide and expand essential connectivity both domestically and internationally

. Air travel needing to be more accessible to passengers with disabilities

. The need to create a more cost competitive operating environment, leading to offering more choice to customers

. Enhancing collaboration between the industry and government, especially in relation to shared accountability during travel disruptions and in creating a regulatory framework to support the industry’s goal of achieving net zero carbon emissions by 2050 

IATA noted in its conference recap that Canada’s current Air Passenger Protection Regulations (APPR) was not only singled out as a major concern during the Airline CEO Roundtable – which brought together the CEOs of Air Canada, Air Transat, Canadian North and WestJet – but also during other panels.

In the words of one CEO, “APPR is a forced insurance policy which airlines need to sell to customers if they want it or not.”

Another CEO compared APPR to being offered $10 by a bus driver in the nation’s capital as delay compensation when having only paid $3 for the ride. “How long before the local transport company would need to raise the fares?”

The Airline CEO Roundtable provided each of the airlines the opportunity to lay out their specific points of view.

Air Canada’s President and CEO, Michael Rousseau, said: “Airlines are committed to serve Canadians and to offer them choice, excellent service and most importantly safe transport. However, we must continually improve to keep the system competitive, ensure it is smartly regulated, make it more accessible and environmentally sustainable, and keep it cost effective and affordable. A summit such as this that brings together all stakeholders is an important opportunity to build a stronger industry to serve Canadians.”

Along similar lines, Annick Guérard, President and CEO of Air Transat, said: “We applaud IATA and the NACC for hosting Aviation Day in Canada. Our team was pleased to join industry colleagues to engage on a competitive, affordable, and resilient air transport system to and from Canada. The aviation sector is a major economic driver – let’s celebrate and recognize that. Together with our partners in government and across the complex air travel ecosystem, we explored how investments and improvements can enhance the passenger experience and maintain Canadian competitiveness. Resilience drives Air Transat to make the travel experience and customer satisfaction our priority.” 

Canadian North connects some of the most remote communities in Canada. President and CEO Shelly De Caria said: “The IATA and NACC Aviation Day in Ottawa has proven to be a valuable forum to work alongside industry colleagues to demonstrate the importance of aviation in Canada. I am proud to have been able to bring a uniquely Northern perspective to the event, and highlight Canadian North’s essential routes, the incredible communities we serve, and the unique challenges we face every day as we work to connect the North.” 

WestJet Group CEO Alexis von Hoensbroech had this to say: “Increasing the affordability of air travel for Canadians is not only foundational to WestJet’s strategy but to our aviation industry, which serves as an essential lifeline that drives economic growth and connects Canadians from coast-to-coast and around the world. I am grateful to both IATA and NACC for hosting the inaugural Aviation Day. This event brought together our peers, government and industry partners in Ottawa and facilitated meaningful dialogue on how we can address the challenges facing our industry under the collective goal of enhancing Canada’s connectivity through affordable air travel.” 

APPR was also a topic of discussion by both IATA and NACC during their presentations and remarks, along with the issue of high operating costs in Canada. IATA notes that Canadian airports pay crown rent to the government, “money which is not reinvested into the aviation value chain. This is reflected in the high portion of taxes and fees which make up the total costs of an airlines ticket in Canada. Here again the industry called on the government to work with sector to consider options to lower these costs.”

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