With the arrival of a New Year came significant fee reductions at Toronto Pearson. January 1, 2009, was the effective date for another reduction in landing fees and terminal charges paid by airlines at Toronto Pearson.

As the operator of the largest airport in Canada and one of the largest airports in North America in terms of passenger and air cargo traffic, the Greater Toronto Airport’s Authority (GTAA) was pleased to announce these reductions on October 10, 2008, despite a projected decrease in passenger volume for 2009.

“We are very conscious of the state of the aviation industry and I am proud of the work of all GTAA staff that has allowed us to reduce fees for the second year in a row,” said Lloyd McCoomb, President and CEO of the GTAA. “We believe it is important for airports to do what they can to offer savings to the airlines.”

Landing fees are charged to cover the costs of operating at Toronto Pearson. These fees have been reduced by 0.4 per cent. Terminal charges are set to cover the costs for the common areas of the passenger terminals. These charges have been reduced by 0.6 per cent. The total fee reduction will offer projected savings of $28 million to the airlines in 2009.

"We are pleased that the GTAA and other airport authorities in Canada are showing leadership in a critical area and at a time when the airline industry is facing unprecedented pressures," said Ken McKenzie, Executive Vice-President of Operations for WestJet. "We commend the GTAA and thank them for recognizing the need for change in this area."
Duncan Dee, Executive Vice President of Customer Experience and Chief Administrative Officer of Air Canada added, “We welcome this decision as a step in the right direction. We look forward to continue working with the GTAA to achieve further cost reductions and efficiencies to make Pearson Airport an even more effective hub for our customers.”

In addition to a reduction in landing charges and terminal fees, the GTAA was pleased to announce a 25 per cent decrease in all-cargo landing fees on June 19, 2008.

Toronto Pearson processes more than 45 per cent of Canada’s air cargo, serves a population of more than 5 million, processes $31.7 billion of goods per year and moves more than 500,000 tonnes of cargo annually.

Additional cargo business from carriers taking advantage of this reduction may remove as many as 40,000 trucks per year off Ontario roads – trucks that now travel from the GTA to airports in New York and Chicago, slowing up the border, causing congestion and ground-level air pollution. The new fee reduction initiative also includes provisions that will encourage air carriers to modernize their fleets to newer, quieter and more fuel-efficient aircraft.

“I applaud the Greater Toronto Airports Authority for taking steps to reduce their fees at a time when transportation costs are increasing at an unprecedented rate,” said Jim Flaherty, Canada’s Minister of Finance and Minister Responsible for the Greater Toronto Area.

The GTAA has worked diligently to achieve reduction in fees by generating additional non-aeronautical revenue through concessions and advertising, and by decreasing expenses.

By reducing fees, the GTAA aims to enhance the economic competitiveness of the Greater Toronto Area, maintain Toronto Pearson’s competitiveness with neighbouring jurisdictions and ultimately help stimulate Canada’s economy.