IATA To Feds: Don’t Privatize Airports, Drop Crown Rents
The International Air Transport Association (IATA) has asked the Canadian government to improve the competitiveness of its aviation sector by prioritizing the elimination of Crown Rents rather than considering airport privatization.
"The Canadian government has already pocketed about $5 billion as the historical landlord of airport property. That’s a $5 billion disincentive to travel, to visit this wonderful country or to plan a business trip. Eliminating Crown Rents would boost Canada’s GDP by over C$300 million annually, create more than 4,000 jobs and generate an additional C$111 million in tax receipts. This should be the priority," said Alexandre de Juniac, IATA’s Director General and CEO.
In a speech in Montreal, de Juniac congratulated the Canadian government for not including airport privatization in its 22MAR budget announcement.
"We hope that Transport Minister Marc Garneau’s motivation to defend the interests of travellers will keep the privatization idea on the back-burner permanently. Let me be completely unambiguous. Canada will regret it if the crown jewels are sold," said de Juniac.
We have not seen a regulatory framework anywhere in the world that has been able to successfully balance profit and public interest over the long-term. But we have seen airport privatizations dent a country’s competitiveness by increasing the costs of mobility and compromising service levels," said de Juniac.