"Canadian Airport Industry Says, 'Rent Relief Grounded'"

Wednesday, February 23, 2005

Airport Industry Says, "Rent Relief Grounded" 
'Canadian airport industry is devastated with Government's failure to
address rent relief'
Press Release


OTTAWA, /CNW Telbec/ - "The Canadian airport industry is devastated that
today's federal budget did not address the excessive rent airports in Canada
are required to pay. These rents are a tax on all air travelers who now pay
an average of $7 every time they board an aircraft. We will also continue to
be uncompetitive against our worldwide competitors,
especially those in the United States, as a result of no rent relief in
today's 2005 Federal Budget," said Jim Facette, President and CEO of the
Canadian Airports Council.

Mr. Facette also said, "Airports in Canada only have limited sources of
revenues, landing fees being the largest, and today's Federal Budget will
ultimately result in raising aviation fees rather than facilitating airports
to lower fees to the benefit of airlines and the traveling public."

In fiscal year 2005-2006, rent from airports in Canada will be $304 million
and then climb to $376.2 million in 2006-07. Since 1993, airports in Canada
have paid $2 billion for assets that had an original book value of $1.15
billion. Mr. Facette also said, "The federal government had a real
opportunity to make a competitive difference for the airport industry and
the communities they serve; that is now grounded."

The airport industry in Canada has advocated that any rent paid by airports
in Canada must be fair, equitable and not be paid by airports with less than
2 million passengers annually. "The future of smaller National Airport
System airports is very much at risk, without rent relief many may not be
able to survive," said Mr. Facette.

The consequences of inaction are considerable:

    -  Canada will now have two small airports paying rent in 2005, Victoria
and Quebec City, $1M and $300,000 espectively;

    -  Airports in Thunder Bay, St. John's, Regina, and Saskatoon must now
prepare to pay rent totaling $2.29 M that could result in a crippling of
their ability to operate;

    -  In addition to 2005 increases, Calgary's rent will increase by 100%
and Edmonton's will increase by 500 percent in 2006;

    -  Major airports, particularly Toronto, will continue to pay these
punishing rents which they have no choice but to pass on to the airlines.

Formed in 1992, the Canadian Airports Council represents Canada's
non-federal airports for industry policy and regulatory matters,
facilitating industry education and exchange, and promoting the industry in
Canada and globally. CAC members account for 100% of all international
passenger and cargo air transportation in Canada and 95% of domestic
passenger traffic. With 43 members, operating more than 120 airports, the
CAC includes all major international airports and a number of regional
airports across Canada.

For further information: Jim Facette, President & CEO, (613) 560-9302, Ext.
11 or (613) 762-5997


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