ATAC Reflects on Budget

    OTTAWA, Jan. 27 /CNW Telbec/ - A step in the right direction. This is how
John McKenna, President of the Air Transport Association of Canada (ATAC),
considers the budget released today by the Minister of Finance.
    He indicated that the decision not to finance an estimated $282 million
in additional funding for the Canadian Air Transport Security Authority
through an increase in the Air Travellers' Security Charge was positive for
air transportation in Canada. "It would have been inopportune to raise a tax
during these economically difficult times."
    The funding will support development of aviation security plans, improve
operations of CATSA and implement a new passenger assessment system. "We need
to look closely at what this new passenger assessment system will entail. The
same can be said for the $14 million cargo security plan also announced
today," continued Mr. McKenna.
    Positive features of the budget for Canadian air carriers also include
the increase in small business deductions and extended capital cost allowances
on computers.
    On the negative side, however, ATAC is very disappointed that the budget
did not include the Prime Minister's promise of a 2 cents/litre reduction in
fuel excise taxes. "A reduction would certainly have helped our industry
during these uncertain times. We met with the Minister of Transport,
Infrastructure and Communities in December on this issue, among others, and we
will continue to push for this promise to be honored," concluded Mr. McKenna.

    The Air Transport Association of Canada, founded in 1934, serves as
Canada's national trade association for commercial aviation and flight
training industries as well as aviation industry suppliers.

    Version française disponible

For further information:

For further information: John McKenna, President and CEO, (613)
233-7727, ext 313, (613) 301-3969 (cell)

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Air Transport Association of Canada

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