The National Airlines Council (NAC) said passengers should not expect faster airport screening despite a 33% increase in mandatory security fees. .According to data, the fees, which are meant to pay for security costs, actually generate annual profits for the Canadian government.. Baggage overflow .“I wish I could say these increases in fees would lead to better service for both the airlines and passengers,” said Jeff Morrison, CEO of the NAC. .“I cannot say that. For example, with the increase in the air security charge, that is money that goes into general revenue.”.According to Blacklock’s Reporter, cabinet in its omnibus budget bill C-47, raised the Air Travellers Security Charge retroactively to May 1 from $15 to $20 on round trip domestic flights, $13 to $17 on U.S. flights and from $26 to $34 on overseas flights. .“All that funding goes into general revenue,” Morrison told the Senate National Finance committee..“Will it lead to better service, better improvements?”.“I wish I could say yes. Airlines wish we could say yes, but given that, we don’t suspect that’s the case. Unfortunately, I don’t believe so.”.“That’s a direct carry over to the passenger,” said Morrison. .“In other words, that charge gets automatically added to the ticket price. In fact, when you pay for an airline ticket, you can see that carve out and what that fare is. Airlines don’t have a say in that.”.According to the Increasing The Air Travellers Security Charge report from the Budget Office on May 9, the 33% increase is worth $264 million for the next year. This increase is on top of the security revenues that generated up to $872 million yearly before the pandemic..In the past, federal regulators collected more money in security fees than they spent on security measures. A review of the Canada Transportation Act in 2016 suggested fees should only be charged based on the actual cost..“Canadian travellers already pay one of the highest aviation security fees in the world,” said the review Pathways: Connecting Canada’s Transportation System to the World. .The report recommended Parliament charge no more for air security than actual costs of passenger and baggage screening with “light-touch regulations covering fees and charges to protect users.”.“Security charges exceeded the cost of security screening by an average of 18% every year since 2010 and fail to recognize the national interest in a secure system,” said the report..The Air Travellers Security Charge was created in 2002 to fund security improvements after the 9/11 terrorist attacks. The Canadian Air Transport Security Authority, which hires private contractors, is responsible for screening passengers at 89 airports across Canada the federal government regulates.
The National Airlines Council (NAC) said passengers should not expect faster airport screening despite a 33% increase in mandatory security fees. .According to data, the fees, which are meant to pay for security costs, actually generate annual profits for the Canadian government.. Baggage overflow .“I wish I could say these increases in fees would lead to better service for both the airlines and passengers,” said Jeff Morrison, CEO of the NAC. .“I cannot say that. For example, with the increase in the air security charge, that is money that goes into general revenue.”.According to Blacklock’s Reporter, cabinet in its omnibus budget bill C-47, raised the Air Travellers Security Charge retroactively to May 1 from $15 to $20 on round trip domestic flights, $13 to $17 on U.S. flights and from $26 to $34 on overseas flights. .“All that funding goes into general revenue,” Morrison told the Senate National Finance committee..“Will it lead to better service, better improvements?”.“I wish I could say yes. Airlines wish we could say yes, but given that, we don’t suspect that’s the case. Unfortunately, I don’t believe so.”.“That’s a direct carry over to the passenger,” said Morrison. .“In other words, that charge gets automatically added to the ticket price. In fact, when you pay for an airline ticket, you can see that carve out and what that fare is. Airlines don’t have a say in that.”.According to the Increasing The Air Travellers Security Charge report from the Budget Office on May 9, the 33% increase is worth $264 million for the next year. This increase is on top of the security revenues that generated up to $872 million yearly before the pandemic..In the past, federal regulators collected more money in security fees than they spent on security measures. A review of the Canada Transportation Act in 2016 suggested fees should only be charged based on the actual cost..“Canadian travellers already pay one of the highest aviation security fees in the world,” said the review Pathways: Connecting Canada’s Transportation System to the World. .The report recommended Parliament charge no more for air security than actual costs of passenger and baggage screening with “light-touch regulations covering fees and charges to protect users.”.“Security charges exceeded the cost of security screening by an average of 18% every year since 2010 and fail to recognize the national interest in a secure system,” said the report..The Air Travellers Security Charge was created in 2002 to fund security improvements after the 9/11 terrorist attacks. The Canadian Air Transport Security Authority, which hires private contractors, is responsible for screening passengers at 89 airports across Canada the federal government regulates.
