Tuesday May 3, 2005
For Immediate Release
Toronto – The International Association of Machinists and Aerospace Workers urge parliament to fix the inherent problems in Canada’s airline industry before implementing any ‘Open Skies’ agreement with the United States.
That message was delivered to members of the parliamentary Standing Committee on Transport, holding hearings on Air Liberalization and the Canadian Airports System. “We believe that our industry is in no shape to benefit from further liberalization at this time,” said Paul Lefebvre, president of IAMAW Local Lodge 2323. “Deregulation in our vast and sparsely populated country has had a negative impact on our industry leaving an unstable National carrier and two low cost models all fighting for market share.”
According to a ‘Canada-US Open Skies’ study prepared for the IAMAW’s Air Canada Locals by Louis Gialloreto of Stowe & Breton Consultants, Canada is slowly emerging from its second deregulated recession and it must ‘get its house in order before inviting our neighbours in.’ The study says Canada can begin correcting the situation by addressing big cost items including skyrocketing airport rents, Airport Authority unaccountability for collecting some of the highest user fees in the world, escalating air navigation fees and security surcharges that are much higher than in the U.S.
“We need to reduce the rents that are paid to the government for facility use and the savings must then be mandated to be passed on to the users,” said Lefebvre. Once the rents are under control, he added then we must turn our attention to the Airport Authorities. “It is our belief that our government must reign-in the Airport Authorities and force a cost discipline upon them,” said Lefebvre. “Someone needs to introduce accountability in the selection, term and mandate of these organizations.
“Our study has indicated that we need a level playing field if we are to consider further liberalization of our air transportation system with the US,” he said. “Unless we make these changes, we won’t have it.” The IAMAW is the largest air transportation sector union in Canada.
