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Federal Budget 2023 | Airport Congestion: More Airfare to Fund Services

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(Ottawa) After a year marked by endless queues at airports, Ottawa promises improved service in addition to tightening the screws on airlines. The first measure will be financed by a tariff that will increase airfares. In the second case, travelers will have to be patient.

Finance Minister Chrystia Freeland’s budget presented on Tuesday proposes an amendment to the Canada Transportation Act. The paragraph in the document, however, does not provide a timeline or details on the changes that will be proposed.

It promises to “strengthen the obligations of air carriers to compensate” travelers “in the event of delays and cancellations”.

“These changes will align Canada’s air passenger rights regime with the approach taken by major international jurisdictions and ensure that Canadians are fairly compensated for travel delays that are within the control of air carriers.” »

What do you think of this federal budget tabled by Chrystia Freeland?

Consumer rights advocates criticize the Travelers Charter – which needs to be tightened up – for lacking teeth. Complaints have accumulated at the Canadian Transportation Agency (CTA), to the point where the processing times are considered unacceptable by many observers.

According to the budget, the Agency’s complaint adjudication process is expected to become “more efficient.” How ? The answer is not in Ms. Freeland’s budget.

As for the level of service at airports, the improvement must go through funding of 1.8 billion over five years granted to the Canadian Air Transport Security Authority (CATSA). This federal agency is responsible for airport security checks and baggage screening, among other things. The lack of officers had contributed to the chaotic scenes at airports last summer.

Travelers will fund CATSA. Ottawa will hike the Air Travelers Security Charge (ATSP) – which is typically paid when consumers purchase airline tickets by around 33%.

“Rates were last increased in 2010, when they were increased by 52.4%,” says Budget Freeland, adding that the changes would take effect from May 1, 2024.

Concretely, for a round-trip domestic flight, the DPSTA would increase by $4.91, to settle at $19.87.

For transborder and international flights, the fare generally applies only to flights leaving Canada. Abroad, governments may also impose similar fees for return travel.

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