One Size Doesn’t Fit All: The Future Growth and Competitiveness of Canadian Air Travel

Airports play a vital role in Canada’s transportation network. They enable ease of access for all sectors and industries in our country. Large international airports in Canadian cities link Canada to international destinations and markets, while regional airports feed these large airports. In Canada’s North, airports are the most important infrastructure used to connect the enormous and sparsely populated territory.

Canadian airports generate over $45 billion in economic activity and provide 200,000 jobs across the country. Despite the industry’s successes in Canada, it faces serious challenges as it tries to adapt to a competitive and ever-evolving global industry. When the Standing Committee on Transport and Communications (“the committee”) began its study on emerging issues related to the Canadian airline industry, 4.2 million Canadians were opting to drive to U.S. airports in order to take advantage of cheaper flights. Today this number stands well above 5 million. At a rate of half a million passengers per year, cross border leakage represents a growing amount of lost revenue for the Canadian industry and all levels of government.

Over the course of its study on the emerging issues related to the Canadian air transport industry, the committee heard testimony from 98 different witnesses. Their testimony depicted the complex and competitive global and domestic context in which this industry is evolving (see Appendix I). In short, it is apparent that Canada’s air transportation industry lacks a clear national strategy.

As discussed in its interim report entitled The Future of Canadian Air Travel: Toll Booth or Spark Plug?, the committee is convinced that Canada needs a single, cohesive National Air Travel Strategy to chart a new course towards increased air travel in Canada. The committee also remains confident that this strategy should be predicated on treating Canadian airports of all sizes as economic spark plugs rather than as a source of public revenue.

While the committee does not pretend to have the expertise to inform the particulars of a National Air Travel Strategy, it would like to offer some specific direction on how Northern and Regional airports should fit into this overall national strategy. In short, the Government of Canada should break with the past and stop using the “one size fits all” approach that has prevailed in Canadian aviation policy over the last two decades. Regulations and policies have all too often been adopted irrespective of their specific impact on northern and regional air travel. A National Air Travel Strategy must therefore take into account the specific needs and challenges of all regions, particularly the isolated north. Furthermore, northern and regional air infrastructure must be improved.

The committee is pleased to present its final report on the future growth and global competitiveness of the Canadian air travel industry. By focusing on ways to strengthen the industry and provide better access to air travel for all Canadians, the recommendations in One Size Doesn’t Fit All will lead to a stronger economy as well as stronger and more prosperous communities throughout Canada.

Download the Standing Senate Committe report on transport and communication