Despite an increase of 33 percent in mandatory airport security fees, the National Airline Council says passengers should not expect faster airport screening.
Figures show that the new air passenger fees intended to cover the costs associated with airport security actually represent an annual profit for the federal government, according to Blacklock’s Reporter.
The CEO of the Airline Council, Jeff Morrison, said that even though those fees have risen substantially, he can’t confirm that airport security screening will see any improvement in terms of service level.
“I wish I could say these increases in fees would lead to better service for both the airlines and passengers,” Morrison told the Senate national finance committee. “I cannot say that. For example, with the increase in the air security charge, that is money that goes into general revenue.”
In the omnibus bill C-47, which passed June 22, cabinet raised the Air Travellers Security Charge (ATSC) retroactively to May 1 from $15 to $20 for round-trip domestic flights, it increased from $13 to $17 on flights to the United States and changed from $26 to $34 for international flights. Morrison confirmed to the committee that the revenue is not separated from the government’s general revenue.
Morrison expanded on the question about whether passengers would see improved service for their extra investment. “I wish I could say yes. Airlines wish we could say yes, but given that, we don’t suspect that’s the case. Unfortunately I don’t believe so.”
“That’s a direct carry-over to the passenger,” he said. “In other words, that charge gets automatically added to the ticket price. In fact, when you pay for an airline ticket, you can see that carve-out and what that fare is. Airlines don’t have a say in that.”
Based on a May 9 report from the Budget Office, the 33 percent increase is expected to cost Canadians $264 million next year. This increase is on top of $872 million in annual security revenues generated in pre-pandemic years, Blacklock’s reported.
Historically, federal regulators have generated more in security fee revenue than they have spent on airport security, this is the case despite a 2016 statutory review that recommended those passenger fees be charged at levels only necessary to cover security costs.
“Security charges have exceeded the cost of security screening by an average of 18 percent every year since 2010 and fail to recognize the national interest in a secure system,” said the report.
The ATSC was originally introduced in 2002 to offset costs presented by airport security overhauls following the 9/11 terrorist attacks. Currently, 89 federally regulated airports in Canada employ passenger screening protocols undertaken by the Canadian Air Transport Security Authority.