A plane takes off from Vancouver International Airport in Richmond, B.C., in May, 2019.JONATHAN HAYWARD/The Canadian Press
Eric Tanner is vice-president of revenue management and network planning at Flair Airlines.
Much has been said lately about the critical lack of regional flight options for people who reside outside of major cities in Canada. As someone deeply involved in this industry, I felt compelled to say something.
There are fundamental challenges critical to understanding the true nature of the crisis in regional connectivity. My job is to build an airline network to serve Canada. Flying to many small communities, we in the industry witness firsthand some of these challenges.
We are constantly battling two significant obstacles: 1) the unrelenting costs imposed by Canadian airports and 2) a tourism infrastructure that fails to support the larger aircraft now common in global fleets. These obstacles have a profound impact on our ability to maintain, let alone add and grow, regional routes.
Let’s begin with the elephant in the room: airport fees. There is a basic principle in airline revenue management: Lower fares drive higher demand. The difference of even a few dollars can be the deciding factor for many travellers. When fees are as high as they are in Canada, airlines struggle to keep prices competitive, and passengers are driven away.
Canada’s user-pay model is broken, and stifles demand and air access across the country. A clear example can be seen in Victoria. Last year, Victoria International Airport increased its airport improvement fee from $15 to $25 per passenger – a staggering 67 per cent hike on an already hefty charge. To put this into perspective, Victoria’s airport now often collects more money on a ticket to Calgary than the airline itself. Following this change, we at Flair Airlines cut nearly half of our flights from Victoria, removing affordable seats from a market that desperately needs them.
This brings us to another critical point that is often overlooked: While passengers who connect through an airport pay minimal fees, local travellers – who actually contribute to a region’s economy – are burdened with the full brunt of these charges. This is not only unfair but counterproductive.
We believe that if Canada is serious about restoring regional connectivity, there needs to be a revaluation of how airport fees are structured. Airports must be held accountable for ensuring they are run efficiently and not simply passing on their costs to passengers without scrutiny.
But the issue goes beyond airport fees. Regional connectivity is also hindered by the lack of adequate tourism infrastructure. For instance, Prince Edward Island, a province that relies heavily on tourism, reported in its 2023 statistics that it has fewer than 2,400 hotel rooms – down from 2019 levels.
Small regions are ill-equipped to handle the influx of visitors that air travel could bring. If the destination lacks affordable accommodation or rental car options, even the cheapest flight won’t make the trip affordable overall. This is a key factor that needs to be addressed if airlines are to improve regional connectivity.
There is no denying that airlines often find themselves in the crosshairs of public frustration. The airline is usually blamed, whether it’s a lost bag or a delayed flight. However, it is time to recognize that airlines alone are not to blame for the regional connectivity crisis. The reality is that they have attempted to add numerous routes to small cities in recent years, only to see many of them fail owing to unsustainable financial losses.
The hard truth is that regional airports must ask themselves some difficult questions.
Are they doing everything they can to keep costs down? Are they truly working to attract and retain air service? Or are they content to hike fees year after year, without considering the long-term consequences for their communities? The crisis we face today is not just the result of Canadian airlines’ decisions; it is the byproduct of a system that places undue financial strain on the very routes that are most in need of support.
The high fees charged by airports, coupled with a lack of supportive infrastructure, make it difficult for airlines to offer the low fares that stimulate demand and keep these routes viable. If Canada wants to maintain and expand its regional air service, we need to rethink how our airports are funded and managed. Otherwise, the loss of connectivity that many rightly identify as a crisis will only deepen, and the communities that rely on these vital air links will suffer the most.
The bottom line is this: Without systemic change, Canada’s regional connectivity will continue to decline. It’s time for all stakeholders – airlines, airports, governments and communities – to work together to address the root causes of this crisis and find sustainable solutions.