GTAA Supports Findings of the C.D. Howe Commentary on the Burden of Airport Rent

    TORONTO, Feb. 8 /CNW/ - The Greater Toronto Airports Authority (GTAA)
applauds the release of the C.D. Howe Institute Commentary, "Excess Baggage:
Measuring Air Transportation's Fiscal Burden", in particular its
recommendations with respect to the federal government's airport rent policy.
The report recognizes the burden faced by the air transportation industry in
Canada and urges the federal government to address unfair government policies,
including the airport rent policy.
    "Keeping airports and the aviation industry competitive in the global
market is vital not just for our airports and air carriers, but to the success
of the cities and communities they serve," stated Lloyd McCoomb, President and
Chief Executive Officer of the GTAA. "A reduction in airport rent would lessen
the unfair burden imposed on Toronto Pearson and the Canadian air
transportation system. It would also allow Toronto Pearson to be more globally
competitive and have an even greater impact on the Canadian economy."
    This independently-produced commentary recognizes the many fundamental
problems of the federal government's current airport rent policy:

    -   "The formula is problematic because of the vicious circle it creates
        for airports." (p.4)
    -   "...(the current rent formula) fails the test of economic
        efficiency." (p.4)
    -   "In fact, the amount of rent paid has grown faster than passenger
        travel." (p.5)
    -   "As the new rent formula is a tax on revenue, it affects airports'
        incentives to seek additional revenue sources." (p.6)

    The C.D. Howe Institute's recommended first step to address the burden of
airport rent is consistent with a GTAA-developed proposal currently under
consideration by the federal government, which would partially offset the
inequity toward Toronto Pearson that is inherent in the current rent policy
announced in May 2005.
    Airport rent has negative implications for Canadians in terms of flight
convenience and route opportunity to and from Toronto, as well as the
airport's ability to attract new carriers. If implemented by the federal
government, a rent reduction would allow the GTAA to lower landing fees
charged to air carriers which will promote the global competitiveness of the
Greater Toronto Area and full utilization of Canada's premier gateway airport.

    As a critical component of the national transportation infrastructure,
Toronto Pearson is an economic asset of unparalleled importance to southern
Ontario and Canada as a whole. With 31 million passengers in 2006, Toronto
Pearson was Canada's busiest airport.

For further information: Scott Armstrong, Manager, Media Relations,
(416) 776-3709