OTTAWA, Feb. 26, 2013 /CNW Telbec/ - The Air Transport Association of
Canada (ATAC) appeals to the government for a level playing field for
the air transport industry in Canada. Faced with a $4.2 billion
deficit of its Defined Benefits Pension Fund, Air Canada has filed a
request to the Canadian Government for a $150 million cap on its annual
funding obligations for the next ten years starting in 2014. This would
affectively mean $700 million in relief per year for the next five
years.
The Air Transport Association of Canada has represented the commercial
aviation industry in Canada for almost 80 years with a membership of
over 170 members. In a recent letter sent to Prime Minister Stephen
Harper, President and CEO of ATAC John McKenna argued: "Relief offered
exclusively to a former crown corporation, that has already had immense
support, not forthcoming to their competitors, is not the type of
strategy that would benefit Canadians or the air industry now or in the
future."
ATAC is convinced that granting relief to only one carrier would
seriously impact the competitiveness of Canada's airline industry. Not
having to meet pension fund obligations grants a huge advantage not
available to other companies in the industry.
Should the Government offer such relief, ATAC strongly recommends that a
short-term solution be applied based on annual approvals using
established financial measurement tools. Too many variables could
change over such a long time to be locked into a ten year period.
"ATAC is a strong proponent of a level playing field in air transport in
Canada. Consequently, we urge the Government to draft a response to
Air Canada's request in such a way that it would help all Canadian
carriers equally rather than privilege one carrier above all others.
ATAC respectfully suggests that the Government keep in mind that the
Canadian air transport industry as a whole is an essential service and
not just any one carrier," concluded Mr. McKenna.
SOURCE: Air Transport Association of Canada
